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MGM Resorts announced Tuesday that its flagship resort MGM Grand and Mandalay Bay on the Las Vegas Strip will be sold for $4.6 billion.
This is the second major joint venture between MGM and Blackstone Real Estate Income Trust (BREIT) in the past three months.
MGM Resorts expects the multi-billion-dollar deal to give them net cash proceeds of approximately $2.4 billion.
Despite the real estate dealings, operations of the resorts will remain in-house and continue as normal, MGM Director of Corporate Media Relations Brian Ahern said Tuesday.
The net cash profit is valued at $8.2 billion, following last October's transactions with Bellagio and Circus Circus.
MGM announced its first joint venture with BREIT on Oct. 15, 2019, leasing the Bellagio, a Strip resort valued at $4.5 billion.
These leasing transactions are part of the company's “asset-light” growth strategy.
"Our corporate objective remains crystal clear, we will continue to monetize our owned real estate assets, which facilitates our strong focus on returning capital to our shareholders, while also retaining significant flexibility to pursue our visible growth initiatives, including Japan and sports betting."
Associated press contributed to this article
Source: Fox 5 Vegas
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