MGM acquires small parcel of land between Bellagio and Cosmopolitan
MGM Resorts International (NYSE: MGM ) quietly purchased 1.62 acres of land on the Las Vegas Strip last May.
The hotel is located between the Bellagio and the Cosmopolitan, both operated by MGM. MGM paid $54 million for the land, which is located just south of the famed Bellagio Fountains, according to Clark County real estate records.
The property acquired by MGM was previously owned by Steve Wynn when he controlled the Bellagio, Mirage and Treasure Island. In 2000, he sold the venues to MGM, which inherited rights to the 1.62 acres it purchased the previous May.
MGM confirmed the purchase of the property, which is listed as vacant land, to the Las Vegas Review-Journal. However, the operator did not mention what he planned to do with the property.
MGM ## Divesting Land Deals Interesting Buys
MGM's purchase of this 1.62-acre tract of land on the Las Vegas Strip is interesting for a number of reasons, including that the casino giant doesn't own much of the land on which its casinos sit. That's certainly the case on the Las Vegas Strip, where VICI Properties (NYSE: VICI ) owns the majority of MGM-operated casino-hotel properties.
The land acquisition becomes even more interesting when one considers the various stakeholders who own the Bellagio and Metropolis properties. MGM sold the Bellagio real estate assets to Blackstone's (NYSE: BX ) Blackstone Real Estate Income Trust (BREIT) in 2019. Last August, BREIT sold a 21.9% stake in the property to Realty Income (NYSE: O) for $950 million.
When Blackstone sold Cosmopolitan for $5.65 billion in September 2021, the integrated resort properties were acquired by BREIT, Cherng Family Trust and Stonepeak Partners for $4 billion.
Blackstone also owns the real estate assets of Aria and Vdara, which are also operated by MGM.
What MGM could do with Stripland
MGM has yet to make a public statement of intent for the 1.62 acres it purchased. However, the possibility of building a new integrated resort there may be safely ruled out as the site is too small to accommodate such a venue.
It is also unlikely that the property will be used to connect Bellagio and the Cosmopolitan, as there is already a covered walkway starting from the Bellagio that leads visitors to the Cosmopolitan, which is just a stone's throw away. About 30 meters of escalator.
Still, MGM still has options on the land. Although the operator has not commented on the matter, given its asset-light business model and the appreciation potential of the Las Vegas Strip properties, it is possible that MGM will eventually sell the 1.62 acres to Bellagio or the Bellagio shares mentioned above. one of the companies. Metropolitan Real Estate.
Read also:
- U.S. cities with the most Swifties per capita
- Blackjack Casino Advantage: How to Beat the Odds
- Football 101: What is relegation in football?
- Mohegan Sun, Foxwood post gaming revenue declines in fiscal 2023
Source: www.casino.org
