Nevada, USA -The Blackstone Group Inc, an American multinational private equity company in New York City, has today announced its partnership agreement with MGM Resorts affiliate MGM Growth Properties of Las Vegas strip properties.
The deal is reportedly in the region of four and a half million US dollars and expected to be closed by the end of March 2020.
As part of the deal, Blackstone Group will be a minority owner with MGM Resorts International at ownership of 49.9% and 50.1% respectively.
The deal emerges amid MGM worry concerns as it looks to strengthen its balance sheet following last year’s sale of the Bellagio Hotel and Casino.
Jim Murren, chairman and CEO of MGM Resorts International commented on the deal:
“These announcements represent a key milestone in executing the company’s previously communicated asset-light strategy, one that enables a best-in-class balance sheet and strong free cash flow generation to provide MGM Resorts with meaningful strategic flexibility to create continued value for our shareholders.”
It is reported that MGM Resorts International, following pressure to sell some of its real estate will sell its MGM Grand and Mandalay Bay assets, but will lease the properties and continue its business operation as normal.