MGM Resorts International announced that it has closed on its sale of Circus Circus Las Vegas and the 37 adjacent acres for $825 million, subject to final purchase price adjustments, to an affiliate of Treasure Island owner Phil Ruffin.
The purchase price is comprised of $662.5 million in cash and a $162.5 million note due 2024. MGM Resorts plans to utilize the proceeds from this transaction to further its capital allocation strategy and enhance its strategic and operational flexibility.
MGM Resorts acquired Circus Circus Las Vegas in connection with its acquisition of Mandalay Resort Group in 2005. Originally opened in 1968, today the property has 2,300 employees and is home to the Adventuredome (a 5-acre indoor amusement park), a 10-acre RV park, and 37-acre festival grounds.
Morgan Stanley & Co. LLC and CBRE are serving as financial advisors to MGM Resorts.
In addition, Blackstone Real Estate Income Trust and MGM Resorts International announced in last month the closing of the previously announced 95%/5% BREIT-led joint venture with MGM Resorts to acquire the real estate assets of the Bellagio for $4.25 billion in a sale and leaseback transaction.
