Casino sales: Bellagio and Circus Circus in Las Vegas change owners
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The casino operator MGM Resorts International has ensured a bang in Las Vegas. The two prestigious casinos Bellagio and Circus Circus are sold. The Casino Hotel Circus Circus changes owners for $ 825 million. The new owner is the billionaire Phil Ruffin. For a whopping $ 4.25 billion, the HedgeGrunde Blackstone Investment Group takes over the Bellagio. However, the operational business remains under the control of MGM by means of a lease-back agreement.
New Circus Circus owner is a friend of Donald Trump
Already in the more recent rumors, rumors about serious changes in the Las Vegas casino industry. Now the secret has been revealed. The Casinogigant MGM published two official press releases regarding the sale of the Bellagio and Circus Circus casinos. The latter was founded in 1968 and taken over by MGM in 2005. Now it will sold to the US billionaire Phil Ruffin for a total of $ 825 million. $ 662.5 million will be paid in cash immediately. the remaining amount of $ 162.5 million only follows in 2024. the name phil ruffin is known in the las vegas gambling industry. he is already the owner of the treasure island hotel and casinos and operates other companies in the gambling and real estate sector. his assets will From the Magazin Forbes to approximately $ 2.8 billion estimated. And another fact made the investor known beyond the national borders. He is considered Good friend and confidant of US President Donald Trump. They also run the Trump International Hotel Las Vegas together.
Bellagios’ surgical business remains at MGM
The sale of the prestigious and world -famous Bellagio Casinos beats high waves. The new owner is a company that was founded as a joint venture from MGM and Hedge fund Blackstone. the The cost of the casino complex amounts to a total of $ 4.25 billion. The transfer of the money is scheduled to take place this year. However, a lease-back agreement comes into force at the same time, which returns the resort to MGM for a rental fee of $ 245 million. Control over the operational business remains unaffected and is still in the hands of MGM, as a spokeswoman for the group said. All employees and guests are not exposed to any changes. Everything goes his usual walk.
The Bellagio: The famous Hotel and Casino Resort Bellagio in the heart of Las Vegas was opened in 1998 and has been part of the MGM Group since 2000. 3,950 rooms and a casino area of around 11,000 m² make the luxury resort one of the most coveted starting points on the strip. The Casino also experienced international fame through the Hollywood film Ocean’s Eleven and the computer-controlled water show “Fountains of Bellagio” directly in front of the complex.
Management level reorganized and the strategic basic orientation modified. This included the investment fund MGM Growth Properties LLC, founded in 2015. The majority of the MGM real estate, including the Park MGM, Mirage and Mandalay Bay, is already part of the investment fund. The sale of the Bellagios and the Circus Circus also rinses a gross proceeds of around five billion US dollars. After deducting the transaction costs, a net proceeds of $ 4.3 billion are likely to be left.
Sales yield already permanently scheduled
The sale gives MGM Resorts a gigantic amount of free capital, which is already firmly planned. On the one hand, the shareholders should be rewarded by a lucrative distribution. On the other hand, the free capital invests in two areas, in order to be able to position yourself more widely and a solid on the competitive gaming market. The focus is still on the preservation of a Japanese gambling license and investments to enlarge one’s own share in the US sports betting market. Jim Murren, CEO and CEO of MGM Resorts International, commented on the sale of the two casinos:
“These transactions increase the company’s strategic and operational flexibility and strengthen its commitment to targeted new growth opportunities, including securing and investing in one of the integrated resort licenses in Japan and development as an industry leader for sports betting in the USA.”
MGM Resorts significantly reduces its casino seat after the final conclusion of the sales. Only the MGM Grand in Las Vegas and the MGM Springfield in Massachusetts are still 100 percent in the hands of gaming giants. However, whether a sale will be due in the future or How the other plans are with the two casinos is not yet known. However, the CEO Murren had already sounded in an earlier interview that as few properties as possible were targeted in the future.