MGM Seeks Investors for MGM Grand, Mandalay Bay Venture
MGM to Seek Investors for MGM Grand, Mandalay Bay Venture
(Bloomberg) -- MGM Resorts International and MGM Growth Properties LLC are seeking an investor for a joint venture that would own at least two prominent Las Vegas properties, according to people with knowledge of the matter.
The duo have solicited interest in the MGM Grand Hotel & Casino and the Mandalay Bay Resort & Casino from investors that have historically bet on gaming properties, said the people, who requested anonymity because the talks are private. A representative for MGM Resorts declined to comment and representatives for MGM Growth Properties didn’t immediately respond to requests for comment.
MGM Resorts created the real estate investment trust MGM Growth in 2016 and sold a minority interest to the public. The REIT owns most of MGM Resorts’ casinos and leases them back to the company to operate.
The Mandalay Bay is one of 13 properties owned by MGM Growth according to a filing. The MGM Grand, one of few properties still owned by MGM Resorts, is expected to be sold by the end of the year, the company said last month. The transaction would mark one of the final steps toward its goal of becoming an “asset-light” casino operator.
Last month, it agreed to sell the Bellagio to Blackstone Group in a $4.25 billion deal and the Circus Circus casino to real estate mogul Phil Ruffin.
To contact the reporters on this story: Gillian Tan in New York at gtan129@bloomberg.net;Christopher Palmeri in Los Angeles at cpalmeri1@bloomberg.net
To contact the editors responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net, Craig Giammona
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