MGM Resorts International is selling the real estate assets of MGM Springfield in Massachusetts to the company’s real estate investment trust in a $400m transaction.
The Las Vegas-based operator will continue to run the casino resort under a lease agreement with MGM Growth Properties.
MGM Resorts held a 42 percent ownership stake in MGM Growth as of 31 March. MGM Springfield will be added to the existing Master Lease between MGM Resorts and MGM Growth Properties, which already includes a dozen MGM properties in Las Vegas, MGM Northfield Park in Northfield, Ohio and Empire Resort Casino in Yonkers, New York and a retail/ entertainment complex called The Park in Las Vegas.
“MGM Springfield has exhibited strong financial performance as it emerges from the pandemic, and the property delivered record [earnings] in the first quarter of 2021,” he added.
In a note to investors, J.P. Morgan gaming analyst Joe Greff wrote the translation “improves [MGM’s] already strong liquidity position, enhancing its ability to invest in its land-based casinos or BetMGM and return capital to shareholders”.