MGM Growth Properties

MGM Growth Properties, LLC
FoundedOctober 23, 2015 (2015-10-23)
DefunctApril 29, 2022 (2022-04-29)
FateAcquired by Vici Properties
Headquarters
Summerlin South, Nevada
,
United States
Revenue $881 million (2019)
$275 million (2019)
Total assets $11.9 billion (2019)
Total equity $6.9 billion (2019)
Footnotes
[1]

MGM Growth Properties, LLC (MGP) was a real estate investment trust (REIT) based in Summerlin South, Nevada, that invested in large-scale casino properties. The company had whole or majority ownership of 15 properties, all operated by MGM Resorts International, from which the REIT was spun out in 2015.[2] Vici Properties leases the properties to MGM Resorts via triple-net leases,[1] since the REIT was acquired by Vici — a 2017 REIT spin-off from Caesars Entertainment Corporation[3] — in April 2022, for $17.2 billion.

History

The company was formed on October 23, 2015.[1]

On April 25, 2016, the company became a public company via an initial public offering and acquired The Mirage, Mandalay Bay, Luxor Las Vegas, New York-New York Hotel and Casino, Monte Carlo Resort and Casino, Excalibur Hotel and Casino, The Park, Gold Strike Tunica, MGM Grand Detroit, and Beau Rivage from MGM Resorts International.[4][2]

On August 1, 2016, the company acquired the real estate assets related to the Borgata Hotel Casino and Spa from MGM.[5]

In September 2017, the company acquired MGM National Harbor for $1.2 billion.[6][7][8]

In July 2018, MGP bought Northfield Park, a racino in Ohio, for $1.02 billion. Hard Rock International remained as the property's manager.[9] In January 2019, the company bought another racino, Yonkers Raceway & Empire City Casino, for $625 million, and leased it to MGM Resorts.[10][11] In April 2019, MGM Resorts bought Northfield's operating business from MGM Growth for $275 million in stock, assumed control from Hard Rock, and rebranded the property as MGM Northfield Park.[12][13] MGM Resorts leased the property from MGM Growth for initial rent of $60 million per year.[14]

In February 2020, MGP formed a joint venture with the Blackstone Real Estate Income Trust to own the real estate of Mandalay Bay and MGM Grand Las Vegas. The joint venture paid $2.1 billion to MGP for Mandalay Bay, and $2.4 billion to MGM Resorts for the MGM Grand. MGP took 50.1 percent ownership of the joint venture.[15][16][17]

In May 2021, MGP agreed to buy the real estate of MGM Springfield from MGM Resorts for $400 million. The property would be leased back to MGM Resorts for initial rent of $30 million per year.[18]

In August 2021, MGP agreed to be acquired by Vici Properties for $17.2 billion (consisting of $4.4 billion of cash, $5.7 billion of assumed debt, and the remainder in stock).[19][20] The sale was completed on April 29, 2022.[21]

Properties

The properties owned by MGM Growth Properties at the time of its acquisition were:

References

  1. ^ a b c "MGM Growth Properties LLC 2019 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ a b Driebusch, Corrie (April 19, 2016). "MGM Growth Properties Raises $1.05 Billion in IPO". The Wall Street Journal.
  3. ^ "VICI PROPERTIES COMPLETES SPIN-OFF FROM CAESARS ENTERTAINMENT". Reuters. 2017-10-06. Retrieved 2026-03-25.
  4. ^ "MGM Resorts International Announces Pricing Of Initial Public Offering By MGM Growth Properties LLC" (Press release). PR Newswire. April 19, 2016.
  5. ^ "MGM Growth Properties LLC and MGM Resorts International Complete Transactions for Acquisition of Borgata Hotel Casino & Spa" (Press release). PR Newswire. August 1, 2016.
  6. ^ "MGM Resorts International And MGM Growth Properties LLC Announce Transaction On MGM National Harbor Casino Resort" (Press release). PR Newswire. September 5, 2017.
  7. ^ Neibauer, Michael (September 5, 2017). "MGM National Harbor is changing hands — sort of — for nearly $1.2B". American City Business Journals.
  8. ^ Velotta, Richard N. (September 5, 2017). "MGM subsidiary buying Maryland casino; $1B share repurchase OK'd". Las Vegas Review-Journal.
  9. ^ Exner, Rich (July 11, 2018). "MGM Growth Properties closes $1.06 billion purchase of Hard Rock Rocksino". The Plain Dealer.
  10. ^ Kinney, Jim (January 30, 2019). "MGM finalizes $850 million deal for Empire City Casino in Yonkers, New York". The Republican.
  11. ^ "MGM Resorts International and MGM Growth Properties complete transaction to acquire Empire City Casino in Yonkers, New York" (Press release). MGM Resorts International. January 29, 2019 – via PR Newswire.
  12. ^ Suttell, Scott (April 1, 2019). "With deal closing, the Hard Rock Rocksino officially becomes MGM Northfield Park". Crain Communications.
  13. ^ Stutz, Howard (September 19, 2018). "MGM Resorts entering Ohio through acquisition of Hard Rock Rocksino operations". CDC Gaming Reports.
  14. ^ "MGM Resorts International and MGM Growth Properties LLC announce agreement for Hard Rock Rocksino in Northfield, Ohio" (Press release). MGM Resorts International. September 19, 2018.
  15. ^ "MGM Resorts, MGM Growth Properties and Blackstone Real Estate Income Trust announce completion of MGP/BREIT joint venture's acquisition of the MGM Grand Las Vegas and Mandalay Bay real estate for $4.6 billion" (Press release). MGM Resorts International. February 14, 2020. Retrieved 2020-10-03 – via PR Newswire.
  16. ^ Sayre, Katherine; Gottfried, Miriam; Lombardo, Cara (January 14, 2020). "MGM Resorts Agrees to Sell MGM Grand, Mandalay Bay to Joint Venture Including Blackstone". The Wall Street Journal. Retrieved January 14, 2020.
  17. ^ "MGM Resorts selling MGM Grand, Mandalay Bay for about $2.5B". Associated Press. January 14, 2020. Retrieved January 14, 2020.
  18. ^ Kinney, Jim (May 11, 2021). "MGM sells Springfield property to real estate trust MGM Growth Properties; no impact expected on day-to-day casino operations". MassLive. Retrieved 2021-05-12.
  19. ^ Dave Sebastian (August 4, 2021). "Casino Owner Vici Properties to Buy MGM Growth Properties". Wall Street Journal. Retrieved 2021-08-04.
  20. ^ "VICI Properties Inc. Announces $17.2 Billion Strategic Acquisition of MGM Growth Properties LLC" (Press release). Vici Properties. August 4, 2021. Archived from the original on August 17, 2021. Retrieved August 5, 2021 – via MGM Growth Properties.
  21. ^ "VICI Properties Inc. Completes $17.2 Billion Strategic Acquisition of MGM Growth Properties LLC". www.businesswire.com. 2022-04-29. Retrieved 2022-05-01.
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