MGM Resorts International has agreed to use Infinity World Development Corp. to become sole owner of CityCenter, the Las Vegas Strip complex that includes the Aria and Vdara hotels.
Owned by Dubai, Infinity World has been MGM’s 50-50 partner since the CityCenter was developed (the resort complex opened in late 2009). Infinity World is selling its 50% stake for $ 2.125 billion.
MGM has also agreed to sell the Aria and Vdara properties to Blackstone Group for $ 3.89 billion in cash pending the MGM-Infinity World deal.
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Both transactions are expected to close in the third quarter. The completion of the Infinity World transaction is not contingent on the completion of the transaction with Blackstone, MGM said.
After acquiring Blackstone, MGM Resorts will pay Blackstone $ 215 million in rent and will continue to operate the hotels.
Blackstone owns shares in the real estate of other MGM hotels in Las Vegas. In 2020, Blackstone acquired nearly 50% of the Mandalay Bay and MGM Grand properties. In 2019, Blackstone acquired 95% of Bellagio properties. In each of these deals, MGM Resorts pays the rent and operates the hotels.
Blackstone also owns the Cosmopolitan of Las Vegas.
Commenting on the upcoming Aria / Vdara property sale to Blackstone, Bill Hornbuckle, CEO of MGM Resorts, said, “This transaction demonstrates the unparalleled premium value of our properties and is evidence of Aria and Vdara’s status as prime destinations on the Las Vegas Strip that we will continue to implement our asset-light strategy and use the proceeds from our real estate transactions to increase our financial flexibility and secure new growth opportunities. “
