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MGM Resorts to sell MGM Grand and Mandalay Bay resorts and casinos for about $2.5 billion

A man bikes past the MGM Grand in Las Vegas
A man rides his bike past the MGM Grand in Las Vegas.
(Associated Press)

MGM Resorts International is selling the MGM Grand and Mandalay Bay resorts and casinos on the Las Vegas Strip to a joint venture for about $2.5 billion.

The joint venture includes private-equity and real estate company Blackstone Group and MGM Growth Properties LLC. The joint venture will be owned 50.1% by MGM Growth Properties and 49.9% by Blackstone. It will also acquire the real estate assets of Mandalay Bay from MGM Growth Properties and lease both properties to MGM Resorts for an initial rent of $292 million.

The total value of the two transactions is $4.6 billion. MGM Resorts anticipates cash proceeds of approximately $2.4 billion.

MGM Resorts announced in October that it was selling the real estate of Bellagio to a joint venture with Blackstone for about $4.25 billion. Last month MGM Resorts said it closed on the sale of Circus Circus Las Vegas and 37 adjacent acres for $825 million.

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The deal, announced Tuesday, is targeted to close in the first quarter.

The Mandalay Bay was the site of a 2017 shooting that left 58 people dead. It is the deadliest mass shooting in modern U.S. history.


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