On Thursday, the Gambling Commission began wading through a complex proposed real estate deal that would boil down to selling MGM Springfield land and property to MGM Investment Fund for $ 400 million and leasing it to MGM Resorts for $ 30 million annually to proceed. manage the casino.
When the deal was announced, real estate investment fund MGM Growth Properties said it did not expect any changes to “MGM Springfield’s employees, suppliers, customers and community.” Even if the sale and change may not have a significant impact on the operation of the casino, the first of which opened under the expanded gambling law of 2011, the Gambling Commission should carefully examine each of the various moving parts and vote on whether to approve transfer. …
“We are delighted to add MGM Springfield to our portfolio of high quality gaming resort properties and are encouraged by the hotel’s recent record financial performance. The deal reflects continued implementation of our growth strategy, ”said James Stewart, CEO of MGM Growth Properties. When announced in May, the deal was expected to close by the end of 2021.
MGM Resorts has completed similar deals with other properties across the country as part of a “low-asset” strategy that frees up liquid funds that the company can invest in other casinos, expand sports betting, or benefit shareholders. CDC Gaming Reports says MGM Springfield is the last of MGM’s regional casinos to be sold to MGM Growth Properties (MGP).
As of the end of 2020, REIT controlled about 32,400 hotel rooms, 1.6 million square feet of casinos, and 3.6 million square feet of conference room, according to the agency.
“As a growth-driven state-owned real estate company, MGP expects its relationship with MGM Resorts and other entertainment providers to enable MGP to attract additional entertainment, hospitality and leisure facilities,” the company said in a statement. …