A New York City-based real estate investment trust (REIT) will soon become the Las Vegas Strip’s biggest landowner. It was announced August 4 that VICI Properties will acquire MGM Growth Properties (MGP) for $17.2 billion.
The deal is expected to close in the first half of 2022 and will solidify VICI as the largest casino REIT, with an estimated value of $45 billion. With the deal, VICI gains ownership of MGP’s 15 entertainment resorts, which are mostly located in Vegas and include Mandalay Bay, MGM Grand Las Vegas and the Borgata in Atlantic City.
MGM Resorts CEO and President Bill Hornbuckle said in a press release that this transaction aligns with the company’s “journey to become asset light” and to focus on expansion.
“As a result of these actions, we are well positioned and remain focused on pursuing growth opportunities in our core business, with significant financial flexibility to continue to deploy capital to maximize shareholder value,” Hornbuckle said in a press release.
VICI Properties CEO Ed Pitoniak added, "We have always admired the exceptional quality of MGP's real estate portfolio and are thrilled this transaction allows MGM to reach its stated objectives while enhancing value for both VICI and MGP shareholders."
This is just the latest Vegas acquisition announcement from VICI. In March 2021, the REIT announced plans to buy The Venetian Resort and its Sands Expo Center for $2.25 billion.
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