MGM Resorts will become the 100 percent owner and operator of CityCenter, located on the Las Vegas Strip. It includes Aria Resort & Casino as well as Vdara Hotel & Spa.MGM Resorts International (NYSE : MGM) announced today that it has reached a definitive agreement with Infinity World Development Corp to acquire its 50 percent interest in CityCenter Holdings LLC for $2.125billion. Based on $1.5 billion net debt, the purchase price is $5.8billion. It also takes into account the sale of a parcel of two acres. MGM Resorts will become the 100 percent owner and operator of CityCenter, located on the Las Vegas Strip. It includes Aria Resort & Casino as well as Vdara Hotel & Spa.Bill Hornbuckle, CEO, President of MGM Resorts, stated that CityCenter has "consistently elevated the Las Vegas experience throughout the years," and contributed to the city's undeniable status as a top tourist and business destination. "Uniting all CityCenter under MGM Resorts corporate structure and strategy will allow me to consolidate financial results, strengthen my operating model, and further my vision to be the world's leading gaming entertainment company."MGM Resorts also reached a definitive agreement to sell the Aria, Vdara real property assets to Blackstone. This agreement is in place until the closing of the equity purchase agreement between MGM Resorts & Infinity World. Blackstone funds will purchase the Aria-Vdara real property for $3.89 Billion in cash. This is a multiple of 18.1x rental. MGM Resorts will lease both properties for an initial annual rent of $215 millions.Hornbuckle stated that the real estate deal with Blackstone demonstrates the extraordinary premium value of our real property assets. It is also a testament to Aria's and Vdara’s status as top destinations on the Las Vegas Strip. 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.Tyler Henritze is the Head of U.S. Acquisitions Americas at Blackstone Real Estate. He stated that this transaction reflected our high confidence in Las Vegas as well as our strong partnership with MGM Resorts. CityCenter is a top-of-the-line resort that will complement our existing portfolio of high-quality assets along the Strip. We look forward to continuing our productive partnership with MGM Resorts."Subject to certain closing conditions, the transactions should close by the end of the third quarter. The transaction with Blackstone is not required for the Infinity World transaction to close.PJT Partners serves as the exclusive financial advisor, while Weil, Gotshal & Manges LLP acts as legal counsel for MGM Resorts in both transactions. Moelis & Company LLC serves as the exclusive financial advisor, while Paul Hastings LLP acts as Infinity World's legal counsel. Blackstone is represented by Simpson Thacher & Bartlett LLP.Daily News Delivery Subscribe to your colleagues and keep up-to-date on the latest trends and news in the Hotel industry. Subscribe2021 Hotel News Resource
