MGM Resorts International has confirmed that it is selling Circus Circus and has made another deal with Blackstone Real Estate Income Trust related to the Bellagio property on the Las Vegas Strip.
Circus Circus is being sold for $825 million to Treasure Island owner Phil Ruffin. They released the following statement:
“The opportunity to own 102 acres on the Las Vegas Strip was very interesting. From a strategic standpoint, Circus Circus is the most recognizable name on the north strip,” said Ruffin. “Treasure Island is the crown jewel in my portfolio and Circus Circus adds another layer of gaming customer to my holdings.”
They are also entering into a joint venture to acquire MGM's Bellagio real estate and lease it back to a MGM Resorts unit.
MGM will receive approximately $4.2 billion once the deal closes and will pay $245 in million in annual rent for the property.
Between the sale and the agreement with Blackstone, MGM is expecting to receive gross proceeds of approximately $5 billiion.
According to MGM, these transactions are the first steps in executing the asset-light strategy. MGM Resorts still retains several highly valuable properties including the MGM Grand, MGM Springfield and a 50% stake in CityCenter and 68% economic ownership in MGM Growth Properties.