MGM buying out CityCenter partner, selling Aria and Vdara real estate

MGM Resorts International agreed to purchase Infinity World Development Corp., making it the sole owner of CityCenter on the Las Vegas Strip. This complex includes the Aria Hotel and Vdara Hotels.Infinity World, Dubai's owned company, has been MGMs 50-50 Partner since CityCenter was built (the resort complex opened in 2009). Infinity World has decided to sell its 50% stake for $2.125billion.MGM has also reached an agreement to sell Aria and Vdara real property to Blackstone Group in exchange for $3.89Billion cash. This is in addition to the closing of MGM Infinity World.Las Vegas news and other storiesBoth transactions are expected close by the end of the third quarter. MGM stated that the Infinity World transaction will close without Blackstone's approval.MGM Resorts will rent Blackstone hotels for $215 million annually after the Blackstone acquisition.Blackstone holds stakes in other MGM Las Vegas hotels. Blackstone purchased nearly half of Mandalay Bay's and MGM Grand real property in 2020. Blackstone purchased 95% of Bellagio's real estate in 2019. MGM Resorts operates and pays rent for each of these deals.Blackstone also owns The Cosmopolitan of Las Vegas.MGM Resorts CEO Bill Hornbuckle commented on the Aria/Vdara real property sale to Blackstone. He said that "this transaction demonstrates and is testament to Aria's status in Las Vegas as premier destinations and Vdara’s unparalleled premium value and is a testament of Aria and Vdara’s status as premier destinations. We plan to execute our asset-light strategy, using the proceeds of our real estate transactions to increase our financial flexibility and to secure new growth opportunities.