MGM to sell Bellagio, Circus Circus resorts for $5 billion

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MGM to sell Bellagio, Circus Circus resorts for $5 billion

On Tuesday, the 15th of October 2019, MGM Resorts International, the Las Vegas, Nevada-based global entertainment company with more than 77,000 employees as of December 31st, 2018, said that it would sell its Circus Circus and Bellagio resorts in Las Vegas at separate deals which would likely to add roughly $5 billion into the gambling giant’s coffer, as the US-based Casino operator had been seeking to finance its real estate assets and to revive its balance sheet.

On top of that, according to MGM Resorts International’s Tuesday’s (October 15th) announcement, the Blackstone Real Estate Income Trust, Inc., a real estate investment company, owned by the NY-based Blackstone Group, world’s largest alternative investment firm with more than $21 billion under its management, would purchase 95 per cent of Bellagio’s stake at a $4.25 billion deal, while MGM would retain the rest, while the Blackstone would again lease it back to a casino company of MGM in an annual rent of $245 million.

Aside from that, MGM had also added in its Tuesday’s (October 15th) announcement that the company would sell off Circus Circus Las Vegas to a billionaire American businessman, Phil Ruffin, 84, for $825 million, who owns a number of enterprises in the Las Vegas including the Treasure Island Hotel and Casino.

Nonetheless, according to a Forbes Magazine report, the Las Vegas casino tycoon, Phil Ruffin, had roughly $2.7 billion by the end of 2018.