MGM Resorts Incorporated is one of the global leaders in the entertainment and hospitality industry. The company was founded thirty-four years ago by Kirk Kerkorian. Today, this Nevada-headquartered company-operates luxurious resorts in New Jersey, Las Vegas, Mississippi, Detroit, and Maryland including its iconic Park MGM, Mandalay Bay, Bellagio, and MGM Grand.
Back in January of 2019, MGM Resorts Incorporated finalized taking over of the Empire City Casino venue located in Yonkers, New York. Moreover, the company also operates MGM National Harbor located in Maryland as well as MGM Springfield located in Massachusetts.
One of the global leaders in one of the most profitable industries also has a majority interest in the MGM China Holdings Limited company which is responsible for the flagship MGM Macau casino and resort. Furthermore, MGM Resorts Incorporated also owns fifty percent of Las Vegas CityCenter that includes Aria Resort and Casino.
Lease-Back Agreements for Mandalay Bay and MGM Grand
The company which was founded over thirty-four years ago as MGM Grand Inc. became MGM Mirage twenty years ago when it acquired Mirage Resorts. Back in the mid-2000s, the company’s growth of its retail, food, lodging, and other non-gaming revenues started to outpace demand for such condominiums. At this point, the company’s officials decided to shift its main focus from operating and owning casinos and resorts to building and developing real estate in the gaming and leisure company.
The very mixed-use project launched after the company shifted its focus was CityCenter that at the time was the biggest construction site of this kind in the world. It is also the most expansive project in the real estate industry. When it comes to the company’s flagship properties, these are definitely its Bellagio Las Vegas facility, Mandalay Bay, Park MGM, and MGM Grand.
As reported not so long ago in October last year, the company inked a lease-back business agreement for its iconic Bellagio Las Vegas venue while several days ago it announced the inking of a similar lease-back deal which this time covers two of its Las Vegas-based venues including Mandalay Bay Resort Casino and MGM Grand Las Vegas.
The Las Vegas-based company used its official press release from several days ago to share more details including that these lease-back agreements for its Las Vegas facilities involve the Blackstone Real Estate Income Trust Incorporated company as well as its own real estate investment trust MGM Growth Properties. The two entities will pay around $4.6 billion to take over the proposed leases for Mandalay Bay Resort Casino and MGM Grand Las Vegas.
Bellagio Brought in $4.2 Billion with Its Lease-Back Agreement
As revealed by the company’s officials earlier this year, the previous lease-back agreement for its iconic Bellagio Las Vegas venue brought in around $4.2 billion. At the time, the company also decided to offload its Circus Circus Las Vegas venue to the owner of the Treasure Island Las Vegas for around $825 million.
Commenting on the news about the two most recent lease-back agreements for Mandalay Bay and MGM Grand Las Vegas, CEO, and Chairman of MGM Resorts said that its company’s agreement with MGM Growth Properties and Blackstone Real Estate Income Trust Incorporated will see this pair form one joint venture to purchase shares in MGM Resorts Incorporated of Class A which are worth around $150 million. He also added that this new business venture will also lease Mandalay Bay and MGM Grand Las Vegas to their former owner for a beginning rent worth $292 million.