Blackstone Group<\/a>. MGM would then lease back the resort casino for 30 years, paying $245 million a year.<\/p>\nMGM also will receive a five percent equity interest in the venture. MGM is expected to use some of the money to reduce debt, as well as boost dividends and share repurchases.<\/p>\n
MGM Growth Possible Purchaser<\/h2>\n
One entity that could try to acquire the MGM Springfield and other MGM venues is MGM Growth Properties, a real estate investment trust (REIT) which already owns some dozen MGM gaming venues. The REIT is majority owned by MGM Resorts.<\/p>\n
During a Tuesday conference call with analysts, a question was posed about the REIT\u2019s interest in the Springfield property and its right of first offer (ROFO). ROFO is put into some contracts so a business has the right to purchase a property — or other asset — before any third party.<\/p>\n
MGM Growth Chief Financial Officer Andrew Chien confirmed to analysts, \u201cThe ROFOs are things that we will be discussing jointly with MGM to the extent it make[s] sense. And timing-wise, obviously with their own real estate committee overlay, there’s many things to evaluate there. So, we’ll throw it into the mix and see what transactions come out.\u201d<\/p>\n
This week, John DeCree, an analyst with Union Gaming, advised investors that MGM Grand, MGM Springfield, and CityCenter \u201cremain as obvious possible growth opportunities\u201d for MGM Growth, according to a report in the Las Vegas Review-Journal<\/em>.<\/p>\n","protected":false},"excerpt":{"rendered":"If MGM Resorts tries to sell its MGM Springfield casino and then lease back the venue, the proposal would face certain scrutiny from the Massachusetts Gaming Commission (MGC) and apparently skeptical city officials. At best, it was described by one local expert as a “long shot.” The possible sale\/leaseback option is getting increased attention this […]<\/p>\n","protected":false},"author":44,"featured_media":119130,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18,13592],"tags":[],"acf":[],"yoast_head":"\n
MGM Springfield Possible Sale, Lease-Back Called Unlikely<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n