As it was reported by several news outlets, the MGM Resorts International is talking to the Blackstone Group Inc. about selling the iconic MGM Grand resort and equally iconic Bellagio hotel and casino located on the Las Vegas Strip. The Blackstone Group Inc. firm is a fully private American equity that specializes in financial services and asset management. The company is based in New York City where its hedge fund, credit, and private equity investment strategies come to life.
The Blackstone Group Inc. was founded thirty-four years in 1984. Shortly after its establishment, the American company became one of the biggest investors when it comes to leverages buyouts and it has managed to preserve this reputation in the last decade as well. As one of the biggest investors in the last years, Blackstone Group Inc. has acquired a number of commercial real estate.
Moreover, since its beginnings, the company has also invested in several notable firms such as Travelport, Vivint, Freescale Semiconductor, United Biscuits, AlliedBarton, Republic Services, EQ Office, Performance Food Group, Merlin Entertainment Group, and Hilton Worldwide. The company’s founders Mr. Schwarzman and Mr. Peterson used to work at Lehman Brothers before deciding to found Blackstone together.
Becoming a Publicly-Traded Company in 2007
Back in 2007, the Blackstone Group Inc. became a publicly-traded company via a massive $4 billion-worth initial public offering. Soon, the company became one of the major privately-owned equity companies to have its shares listed on the public stock market. In addition to its main office located in New York City, the company also has offices in Paris, London, Dublin, Dubai, Shanghai, Tokyo, Singapore, Luxembourg, Mumbai, Sydney, Hong Kong, and Düsseldorf.
As estimated in 2019, the Blackstone Group Inc.’s total assets under its management were around US$470 billion. When it comes to the biggest investments of the company, the Blackstone Group Inc. acquired a number of notable companies during the massive buyout in 2006.
In fact, the company completed some of the biggest leveraged buyouts with several transactions that stand out such as the acquirement of Tele-Denmark Communications alongside several other companies, EQ Office purchased for around $37 billion, Michaels for around $6 billion, Nielsen Holdings, Orangina, and Biomet for $10 billion among many other notable transactions.
MGM Resorts Looking Forward to Lease or Sale Deals for Its Iconic Properties
As reported two months ago, one of the biggest and most reputable resort operators on the Las Vegas Strip, MGM Resorts International is currently looking for ways to unlock value for some of its high-end real estate properties including its MGM Grand and Bellagio resorts. The company’s official press release states that the company is pursuing leaseback or sale deals which would see its MGM Grand and Bellagio real estate properties being sold while the company will remain managing attractions including the gaming operations within the aforementioned luxurious properties.
One of the companies extremely interested in these deals is the Blackstone Group Inc. Many experts believe that selling those two high-end, highly desirable Las Vegas Strip real estate assets could easily result in price tags of $7 billion. The company’s interest in Las Vegas properties came for the first time six months ago when the Blackstone Group Inc. showed its interested in acquiring the Cosmopolitan on the Las Vegas Strip. Hence, there is no surprise in the fact that the Blackstone Group Inc. is now mulling on sales of Bellagio and MGM Grand to expand its growing presence on the Strip.