MGM Resorts announced Monday Blackstone Group had completed its acquisition of the Bellagio for more than $4.2bn in the largest sale of a single Las Vegas resort on record.
The deal allows MGM to retain day-to-day control of the resort.
MGM and Blackstone announced terms of the agreement on 15 October .
The same day, MGM sold Circus Circus to Treasure Island owner Phil Ruffin for $825m.
Blackstone will lease back the Bellagio to MGM for an annual rent starting at $245m.
MGM has been under recent pressure to return capital to its investors.
This has been a year of downscaling for MGM. Back in January, the company
announced its ‘MGM 2020’ plan that sets out to provide $300m in adjusted EBITDA by the end of 2021.
In addition to selling the Bellagio, MGM has been in talks with Blackstone regarding
a potential acquisition of MGM Grand.
For Blackstone, the purchase of the Bellagio expands its Southern Nevada footprint.
The real-estate management company bought The Cosmopolitan in 2014 for more
than $1.7bn, which until now was the most expensive purchase in Las Vegas history.
Blackstone also owns Hughes Center, a premier Las Vegas business center, along
with downtown’s World Market Center, a five-million sq. ft. showcase facility.
