Real estate investment trust
MGM Growth Properties, LLC (MGP) was a
real estate investment trust based in
Summerlin South, Nevada , that invested in large-scale
casino properties. The company had whole or majority ownership of 15 properties, all of which were operated by
MGM Resorts International . The company leased the properties to MGM Resorts via
triple-net leases .
[1] The company was acquired by
Vici Properties 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.
[2]
[3]
On August 1, 2016, the company acquired the real estate assets related to the
Borgata Hotel Casino and Spa from MGM.
[4]
In September 2017, the company acquired
MGM National Harbor for $1.2 billion.
[5]
[6]
[7]
In July 2018, MGP bought
Northfield Park , a
racino in Ohio, for $1.02 billion.
Hard Rock International remained as the property's manager.
[8] In January 2019, the company bought another racino,
Yonkers Raceway & Empire City Casino , for $625 million, and leased it to MGM Resorts.
[9]
[10]
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.
[11]
[12] MGM Resorts leased the property from MGM Growth for initial rent of $60 million per year.
[13]
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.
[14]
[15]
[16]
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.
[17]
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).
[18]
[19] The sale was completed on April 29, 2022.
[20]
Properties
The properties owned by MGM Growth Properties at the time of its acquisition were:
References
^
a
b
c
"MGM Growth Properties LLC 2019 Form 10-K Annual Report" .
U.S. Securities and Exchange Commission .
^
"MGM Resorts International Announces Pricing Of Initial Public Offering By MGM Growth Properties LLC" (Press release).
PR Newswire . April 19, 2016.
^ Driebusch, Corrie (April 19, 2016).
"MGM Growth Properties Raises $1.05 Billion in IPO" .
The Wall Street Journal .
^
"MGM Growth Properties LLC and MGM Resorts International Complete Transactions for Acquisition of Borgata Hotel Casino & Spa" (Press release).
PR Newswire . August 1, 2016.
^
"MGM Resorts International And MGM Growth Properties LLC Announce Transaction On MGM National Harbor Casino Resort" (Press release).
PR Newswire . September 5, 2017.
^ Neibauer, Michael (September 5, 2017).
"MGM National Harbor is changing hands — sort of — for nearly $1.2B" .
American City Business Journals .
^ Velotta, Richard N. (September 5, 2017).
"MGM subsidiary buying Maryland casino; $1B share repurchase OK'd" .
Las Vegas Review-Journal .
^ Exner, Rich (July 11, 2018).
"MGM Growth Properties closes $1.06 billion purchase of Hard Rock Rocksino" . The Plain Dealer .
^ Kinney, Jim (January 30, 2019).
"MGM finalizes $850 million deal for Empire City Casino in Yonkers, New York" . The Republican .
^
"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 .
^ Suttell, Scott (April 1, 2019).
"With deal closing, the Hard Rock Rocksino officially becomes MGM Northfield Park" .
Crain Communications .
^ Stutz, Howard (September 19, 2018).
"MGM Resorts entering Ohio through acquisition of Hard Rock Rocksino operations" . CDC Gaming Reports .
^
"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.
^
"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.
^ 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 .
^
"MGM Resorts selling MGM Grand, Mandalay Bay for about $2.5B" . Associated Press. January 14, 2020. Retrieved January 14, 2020 .
^ 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 .
^ Dave Sebastian (August 4, 2021).
"Casino Owner Vici Properties to Buy MGM Growth Properties" . Wall Street Journal . Retrieved 2021-08-04 .
^
"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.
^
"VICI Properties Inc. Completes $17.2 Billion Strategic Acquisition of MGM Growth Properties LLC" . www.businesswire.com . 2022-04-29. Retrieved 2022-05-01 .
External links
Business data for MGM Growth Properties LLC: