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Old 09-16-2019, 11:39 AM
 
15,844 posts, read 14,479,382 times
Reputation: 11927
MGM in talks to sell and lease back Bellagio and MGM grand.

https://finance.yahoo.com/news/black...160704931.html
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Old 09-16-2019, 11:44 AM
 
727 posts, read 1,057,071 times
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Quote:
Originally Posted by BBMW View Post
MGM in talks to sell and lease back Bellagio and MGM grand.

https://finance.yahoo.com/news/black...160704931.html
Not sure I would call this shenanigans. This is fairly common in commercial real estate.
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Old 09-16-2019, 10:07 PM
 
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Yeah real shenanigans when it's already been done with nearly 100 casino properties in just three REITs
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Old 09-17-2019, 04:58 AM
 
Location: Las Vegas, NV
111 posts, read 73,077 times
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The only surprising part about this was finding out that MGM Resorts still owned those two. I'm pretty sure everything else is already in a REIT.
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Old 09-17-2019, 09:06 AM
 
6,385 posts, read 11,886,305 times
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Originally Posted by 44inarow View Post
The only surprising part about this was finding out that MGM Resorts still owned those two. I'm pretty sure everything else is already in a REIT.
There are a few others not in MGP. They held these out because they knew they could get premium valuations on them later. I just wonder what they will do if they get the cash to spend in Japan and then don't win one of the three licenses.
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Old 09-17-2019, 09:16 AM
 
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Where's this shenanigan you speak of?
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Old 09-17-2019, 10:25 AM
 
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Which entity gets to keep all the debt MGM is holding? It seems like a way of separating the income generation from the bond responsibilities.
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Old 09-17-2019, 12:24 PM
 
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Originally Posted by BBMW View Post
Which entity gets to keep all the debt MGM is holding? It seems like a way of separating the income generation from the bond responsibilities.
They aren't breaking up the company they are selling an asset. The concept is pretty simple. They would rather invest in their business than invest in real estate.
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Old 09-17-2019, 01:21 PM
 
Location: Here and there, you decide.
12,908 posts, read 27,995,060 times
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Quote:
Originally Posted by newopty View Post
They aren't breaking up the company they are selling an asset. The concept is pretty simple. They would rather invest in their business than invest in real estate.
And by leasing they could walk away if anything crashes. I think this is a smart idea for them
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Old 09-17-2019, 01:26 PM
 
Location: Las Vegas, NV
386 posts, read 261,981 times
Reputation: 531
A couple articles that have more info and outlines pros and cons:

https://www.cdcgamingreports.com/gam...tion-activity/

https://www.cdcgamingreports.com/com...ition-in-2019/
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