MGM Resorts Completes Acquisition Of Infinity World’s CityCentre Interest

MGM Resorts International has completed its previously announced $2.125 billion purchase of Infinity World Development Corp’s 50 percent stake in CityCenter Holdings.

After taking into account a prior sale of a two-acre block of property, the transaction, which was initially detailed on July 1, 2021, has an implied valuation of $5.8 billion based on a $1.5 billion net debt.

CityCenter shares the strip with Aria Resort & Casino and Vdara Hotel and Spa, both of which the business intends to monetize.

MGM Resorts and Blackstone have completed the sale-leaseback agreement for the latter to acquire the real estate assets of Aria Resort & Casino and Vdara Hotel and Spa for $3.89 billion, in addition to the acquisition.

MGM Resorts has since leased the property from Blackstone and is now in charge of managing, operating, and overseeing all parts of the facility on a daily basis.

The corporation has fully retired CityCenter’s debt in connection with the conclusion of the deals. CityCenter had $307 million in cash and cash equivalents as of June 30, 2021, and $1.73 billion in total debt.

Top tourism and business destination 

MGM Resorts CEO and President Bill Hornbuckle previously said of the acquisition: “CityCenter has consistently elevated the Las Vegas experience over the years, contributing to this vibrant city’s undeniable position as a top tourism and business destination. 

“Uniting all of CityCenter under MGM Resorts’ corporate structure and strategy will allow us to consolidate financial results, build on efforts to strengthen our operating model and guest experience and further our vision of becoming the world’s premier gaming entertainment company.”

Earlier this week MGM Resorts and Blackstone signed a definitive agreement to buy The Cosmopolitan of Las Vegas‘ businesses for $1.625 billion in cash, subject to standard working capital adjustments.

Following the closing of the acquisition, MGM entered into a 30-year lease agreement with Stonepeak Partners, Cherng Family Trust, and Blackstone Real Estate Income Trust to acquire the real estate assets, with three 10-year renewal options.

MGM will pay an initial yearly rent of $200 million, with annual increases of 2 percent for the first 15 years and the greater of 2 percent or the CPI increase (maximum at 3 percent) after that.

debbie hewlett profile pic 2

About Debbie Hewlett

Debbie is an internet journalist with many years of writing experience with a focus on bingo and gaming. Debbie has written reviews and useful information for gamers and readers on a variety of websites.