MGM Resorts International has some of the famous resorts and casinos in the world. The resorts provide quality entertainment, luxurious facilities, and exceptional customer service. There are more than 28 destinations where MGM Resorts International is located. It is popularly known that MGM International owns almost all the MGM Growth Properties.
In recent news, the real estate investment trust Vici Properties will be acquiring the MGM Growth Properties. The land deal has been sealed for $17.2 billion, which makes Vici Properties one of the largest landowners in the entire Las Vegas.
Since most of the stake of MGM Growth properties is under MGM Resorts International, they will be receiving $4.4 billion in cash when the deal is executed. In addition, the transaction consists of $5.7 billion in debt. MGM resorts have been selling their real estate lands, and MGM Growth Properties was in Laine since 2016. MGM Growth Properties also includes Mandala Bay and MGM Grand Las Vegas.
The new owner of Vici properties will be gaining, altogether, 15 properties from the deal. One of the executives of Vici Properties stated that they are very thrilled with the deal.
The Vici Properties were created to help Ceaser with the bankruptcy. Although there was only one tenant Ceaser, the primary mission of the Vici Properties was to expand the holdings of the trust. As Vici’s portfolio keeps on getting bigger, Ceaser, who was contributing complete 100%, will be contributing 41%. The deal will amount to $45 billion, which is the largest so far.
Each Class A share of MGM Growth Properties will be exchanged for $43 in newly issued Vici shares, a 16 percent premium from the closing price of MGM Growth on Tuesday.
MGM Growth closed at $39.61 on Wednesday, up 6.8% from the previous day. Vici’s shares dipped 0.3 percent to $30.18, while MGM Resorts shares rose 0.9 percent to $37.27.