SPRINGFIELD — MGM Resorts International is selling its real-estate spin off company to the New York-based Vici Properties for $17.2 billion.
Vici will also take on approximately $5.7 billion of debt as part of the deal announced Wednesday before the stock market opened. The sale is expected to close in the first half of 2022 pending regulatory approval and OKs from Vici shareholders.
The sale includes MGM Growth Properties’ pending deal to buy the land and buildings at MGM Springfield for $400 million. Neither sale is expected to impact day-to-day operations at the casino.
MGM Resorts will continue to operate and maintain the properties, including MGM Springfield, under a long-term lease.
“This transaction unlocks the significant real estate value of our assets, enhances our financial flexibility and strengthens our ability to execute key growth initiatives. We look forward to our long-term partnership with Vici,” said Bill Hornbuckle, CEO and resident of MGM Resorts in a statement.
By selling its properties and leasing them back, MGM Resorts raised cash and gained flexibility. The probability that MGM Resorts would sell the Springfield real estate had been discussed for three years, just a few months after MGM Springfield opened its doors.
Vici Properties already owns 28 gaming facilities totaling 47 million square feet and features approximately 17,800 hotel rooms and more than 200 restaurants, bars, nightclubs and sportsbooks.
Its properties are leased to operators, including Caesars Entertainment, Inc., Century Casinos, Inc., Hard Rock International Inc., JACK Entertainment LLC and Penn National Gaming, Inc. VICI Properties also has an investment in the Chelsea Piers, New York facility, in golf courses and in other properties.
Vici Properties’ most recent earnings report said it had a revenue of $376.4 million for the most recent quarter, an increase of 45.9% compared to $257.9 million for the quarter ended June 30, 2020.
Shares of MGM Growth surged about 6% in morning trading, MGM Resorts rose about 3%, while Vici dipped about 2%.
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