MGM may be considering selling yet another property
By Bob Garcia
Three Vegas properties are expected to exit the portfolio, but one across the country could, too
It was recently announced the new deal from MGM Resorts International to get rid of their popular property of Bellagio on the Las Vegas Strip. Now MGM is thinking about taking more load out of the boat regarding their owned properties. MGM Springfield in Massachusetts has been placed next in line to be part of MGM’s strategy to travel light.
The Blackstone Group is the New York-based investment firm that acquired the Bellagio property, while Circus Circus went to Treasure Island, in a sale-leaseback deal with MGM for the great amount of $4.2 billion. Jim Murren, CEO, and chairman for MGM stated last October during the last quarter’s earnings report to the public that a similar real estate sale for MGM Grand was already being considered. The deal most likely will be announced before the year comes to an end, including the current conversation about the sale of its Aria and Vdara resorts, MGM Springfield could be up for sale too according to media reports.
MGM said during a statement that they “focus exclusively on the transfer of real estate and have no bearing whatsoever on the property’s management and operations.” MGM was clear on confirming that any sell, or future or current deals that might happen, would have “no impact on employees, partners or the guest experience.” This MGM Springfield resort was opened just over a year ago in August 2018, and with it, a lot of job opportunities both direct and indirect, too. This giant resort worth $960 million continues to function, but it did not meet the expectations for investors during the first year. A total of $418 million in revenue from gaming was projected in the first year alone; however, $274 million was reported as revenue since August 2018.
MGM seems to be busy putting together some cash through their real state and tackle some of the debts they have, along with the high expectations from a $10 billion resort in Osaka, Japan. But this deal depends solely upon the possibility to get one of the three casino licenses to be granted.