Operator News
US – Blackstone in talks to buy and lease back Bellagio and MGM Grand
By Phil - 16 September 2019Bloomberg has reported that New York-based private equity company Blackstone is looking to buy and lease back two of MGM Resorts’ most prestigious Las Vegas properties.
The Bellagio and MGM Grand Las Vegas, two of the jewels in MGM’s crown, are believed to be on the negotiating table as MGM looks to raise funds for a potential Integrated Resort in Japan, the cost of which is being pitched at $10bn. Combined the two casinos have over 10,000 hotel rooms and gaming floors covering over 315,000 square feet. Analysts believe MGM could fetch $4bn for the Bellagio and $3bn for the MGM Grand.
Bloomberg Intelligence Gaming analyst Brian Egger said: “A Blackstone deal to buy and lease back Bellagio and MGM Grand — in advanced talks, Bloomberg reports — could raise $6.5-$7bn for a $10bn resort in Osaka, Japan, where MGM will vie for a license.”
Blackstone he become a multi-faceted gaming company. It already owns the Cosmopolitan Casino on the Las Vegas Strip as well as Spanish casino, bingo and betting operator Cirsa. It has invested €175m into Superbet, the largest sports betting and gaming company in Romania and owns Ukrainian social casino games developer Murka. It also owns Clarion Gaming, organiser of the gaming industry’s biggest exhibition, ICE.