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Thread: MGM may sell Belagio and MGM Grand -- but also lease them back

  1. #1
    Owner Dan Druff's Avatar
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    MGM may sell Belagio and MGM Grand -- but also lease them back

    In what appears to be a bigger deal than it probably is, several outlets are reporting that MGM has put Bellagio and MGM Grand up for sale, in order to raise cash for international expansion.

    But don't expect those properties to change themes or even management.

    They will remain MGM MLife properties, and the customer won't notice a difference.

    They are simply selling the land and the buildings, and leasing them back.

    Caeasrs has already done something similar, except they've done this via one of their own subsidiaries, VICI Properties.

  2. #2
    Quote Originally Posted by Dan Druff View Post
    In what appears to be a bigger deal than it probably is, several outlets are reporting that MGM has put Bellagio and MGM Grand up for sale, in order to raise cash for international expansion.

    But don't expect those properties to change themes or even management.

    They will remain MGM MLife properties, and the customer won't notice a difference.

    They are simply selling the land and the buildings, and leasing them back.

    Caeasrs has already done something similar, except they've done this via one of their own subsidiaries, VICI Properties.

    Todd,in your opinion is MGM @ 24 bux a buy ?ty.

  3. #3
    MGM completes Bellagio sale with Blackstone group for leaseback deal

    LAS VEGAS (KSNV) — MGM Resorts has completed the agreement to sell the Bellagio Resort to Blackstone Trust in a $4.25 billion leaseback deal.

    The two companies announced the sale closed Monday. Blackstone acquires the Bellagio's real estate in a joint venture, with MGM holding a 5% stake.

    MGM will lease the property and continue to manage and operate it on a day-to-day basis, according to a press release.

    The sale of the Bellagio was announced last month, along with the sale of Circus Circus Las Vegas to Phil Ruffin, owner of Treasure Island.

    MGM Resorts CEO Jim Murren told investors the deal to sell the Bellagio would set a blueprint for other possible leaseback agreements.
    https://news3lv.com/news/local/mgm-b...as-vegas-strip

    Blackstone been gobbling up RE in the QE era. Casinos too. Go figure
    http://www.miraclecovers.com

    "Donk down, that’s what you say to someone after they have lost 28K straight?" - Phil Hellmuth, online

  4. #4
    Analysts predict Hong Kong type riots when that lease expires

  5. #5
    Quote Originally Posted by Shizzmoney View Post
    MGM completes Bellagio sale with Blackstone group for leaseback deal

    LAS VEGAS (KSNV) — MGM Resorts has completed the agreement to sell the Bellagio Resort to Blackstone Trust in a $4.25 billion leaseback deal.

    The two companies announced the sale closed Monday. Blackstone acquires the Bellagio's real estate in a joint venture, with MGM holding a 5% stake.

    MGM will lease the property and continue to manage and operate it on a day-to-day basis, according to a press release.

    The sale of the Bellagio was announced last month, along with the sale of Circus Circus Las Vegas to Phil Ruffin, owner of Treasure Island.

    MGM Resorts CEO Jim Murren told investors the deal to sell the Bellagio would set a blueprint for other possible leaseback agreements.
    https://news3lv.com/news/local/mgm-b...as-vegas-strip

    Blackstone been gobbling up RE in the QE era. Casinos too. Go figure
    Yeah might as well buy up tangible assets on the cheap while money is free and they'll have something to show for it when the inevitable market wake up occurs...………….whenever the fuck that is...

  6. #6
    Owner Dan Druff's Avatar
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    Similar deal was just made involving Mandalay Bay and MGM Grand.

    Nothing too exciting for the average tourist, who won't notice a difference.

    https://www.foxbusiness.com/lifestyl...y-bay-for-2-5b

  7. #7
    Master of Props Daly's Avatar
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    Quote Originally Posted by Dan Druff View Post
    Similar deal was just made involving Mandalay Bay and MGM Grand.

    Nothing too exciting for the average tourist, who won't notice a difference.

    https://www.foxbusiness.com/lifestyl...y-bay-for-2-5b

    It makes sense. Most old school corporations who owned a building or buildings in major cities have long ago sold the building and done a leaseback.

    Can be hundreds of millions of dollars of capital for the company

  8. #8
    Quote Originally Posted by Daly View Post
    Quote Originally Posted by Dan Druff View Post
    Similar deal was just made involving Mandalay Bay and MGM Grand.

    Nothing too exciting for the average tourist, who won't notice a difference.

    https://www.foxbusiness.com/lifestyl...y-bay-for-2-5b

    It makes sense. Most old school corporations who owned a building or buildings in major cities have long ago sold the building and done a leaseback.

    Can be hundreds of millions of dollars of capital for the company
    Your kid is 34 and he has a Phil Ivey neck tattoo and a fondness for the nose candy.

    You set up a trust. You don’t want the him taking a home equity loan out and flying to the WSOP and ending up homeless. Everything you ever worked for ends up in Druff’s bank account

    The big casino companies have neck tattoos. That money will disappear. The land was the only reason Caesars still exists.

     
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  9. #9
    Quote Originally Posted by Sanlmar View Post
    Quote Originally Posted by Daly View Post


    It makes sense. Most old school corporations who owned a building or buildings in major cities have long ago sold the building and done a leaseback.

    Can be hundreds of millions of dollars of capital for the company
    Your kid is 34 and he has a Phil Ivey neck tattoo and a fondness for the nose candy.

    You set up a trust. You don’t want the him taking a home equity loan out and flying to the WSOP and ending up homeless. Everything you ever worked for ends up in Druff’s bank account

    The big casino companies have neck tattoos. That money will disappear. The land was the only reason Caesars still exists.

    would someone help me out and give his post the other green it deserves?

  10. #10
    Master of Props Daly's Avatar
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    Quote Originally Posted by Sanlmar View Post
    Quote Originally Posted by Daly View Post


    It makes sense. Most old school corporations who owned a building or buildings in major cities have long ago sold the building and done a leaseback.

    Can be hundreds of millions of dollars of capital for the company
    Your kid is 34 and he has a Phil Ivey neck tattoo and a fondness for the nose candy.

    You set up a trust. You don’t want the him taking a home equity loan out and flying to the WSOP and ending up homeless. Everything you ever worked for ends up in Druff’s bank account

    The big casino companies have neck tattoos. That money will disappear. The land was the only reason Caesars still exists.
    Your point is spot on. But if you had a MBA you would say they in the casino business, not the real estate one.

  11. #11
    Wow, MGM Resorts sold the Bellago for $4.25 Billion, plus MGM Grand and Mandalay Bay for another $4.6 Billion.

    That's $8.85 Billion in just a few months.

    Now if this coronavirus gets out of hand and bankrupts the casino industry, they are going to look fucking genius.


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