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MGM Resorts selling MGM Grand real estate assets for $2.5B

FILE - In this Aug. 3, 2015, file photo, a man rides his bike past the MGM Grand hotel and casino in Las Vegas. 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.

LAS VEGAS (AP) — MGM Resorts International is selling the real estate assets of the MGM Grand on the Las Vegas Strip to a joint venture for about $2.5 billion.

The joint venture includes private-equity and real estate company Blackstone Group and MGM Growth Properties LLC.

MGM Resorts anticipates cash proceeds of approximately $2.4 billion.

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.

The total value of the two transactions is $4.6 billion.

The Mandalay Bay was the site of a 2017 shooting that left 58 people dead. It is the deadliest mass shooting in modern U.S. history.

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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 Resorts said it closed on the sale of Circus Circus Las Vegas and 37 adjacent acres for $825 million.

The deal announced Tuesday is targeted to close in the first quarter.

Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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