LAS VEGAS (CBS/AP) — 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. MGM Springfield is not being sold, a company spokesman told WBZ-TV.
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.
MGM Resorts anticipates cash proceeds of approximately $2.4 billion.
“They do not involve Springfield,” spokesman Brian Ahern told WBZ-TV about the agreements.
Last May, MGM Resorts International was in talks to possibly buy the Encore Boston Harbor resort casino from Wynn. Discussions ended after MGM said its stakeholders had concerns.
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 Resort said it closed on the sale of Circus Circus Las Vegas and 37 adjacent acres for $825 million.
The deal announced is targeted to close in the first quarter.
(© Copyright 2020 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)