Casino Operator MGM Resorts Completes REIT Creation Process
MGM Resorts announced that they have completed the process of establishing a real estate investment fund – a subsidiary of MGM Growth Properties. Last week, the initial public offering (IPO) was completed in the amount of 57.5 million at a price of $ 21 per share. It raised its revenues to about $ 1.1 billion after deducting the estimated placement costs.
The Public Real Estate Trust includes 10 MGM Resorts located in the United States. REIT manages the following establishments:
- a total of 24.4 thousand hotel rooms;
- about 232.258 thousand square meters of conference rooms;
- more than 100 different retail outlets;
- 200 restaurants and bars;
- 20 entertainment venues.
This information was announced by the management of MGM Resorts in one of their latest press releases. The company strives to attract clients to visit its establishments instead of playing online. Currently, Americans tend to choose online casinos as they offer more convenience with the same functionality. Online gambling establishments like Cookie Casino online provide thousands of various titles from reputable game developers, many lucrative bonuses, quick payments, and many other great features making online gambling platforms prevailing. That’s one of the main reasons for brick-and-mortar casino owners to intensify.
MGM Resorts remains the majority shareholder of MGM Growth Properties after the IPO. The US land-based casino operator will continue to manage the assets held by MGM Growth Properties under a 10-year lease. Jim Murren, Chairman and Chief Executive Officer of MGM Resorts, said the creation of a public real estate fund would strengthen the company’s balance and give it new growth opportunities.
Recall that the American gambling company MGM Resorts was founded back in 1986. The firm is headquartered in Nevada, USA. The total number of the company’s employees is about 60 thousand people.
Genting Malaysia Will Start Developing a New Casino in the USA
The casino market is growing in the United States. Indian tribe representatives in Massachusetts said that Genting Malaysia Bhd plans to open a new casino soon. The $ 1 billion gambling project will be built in the city of Taunton, located about 65 km south of Boston, Massachusetts.
Genting Malaysia, part of the Malaysian conglomerate Genting Bhd, recently changed several subsidiaries, including Genting Massachusetts LLC. Industry analysts at Japanese brokerage Nomura said that as a result of the changes, Genting Malaysia will co-finance the development of a new gambling project. He also said that the company will not only manage the gambling establishment but also contribute to the development of the gambling complex.
- The Mashpee Wampanoag Indian Tribe from Massachusetts was officially recognized by the US Federal Government in 2007.
- Mashpee Wampanoag plans to build a casino on land that has been designated an Indian reservation. Therefore, it does not require government approval for development.
Many Macau casino operators are also interested in the construction of new projects in Massachusetts. For example, Wynn Resorts Ltd, the parent company of Wynn Macau Ltd, plans to build a casino in Everett, on the outskirts of Boston. The total cost of the project is estimated at $ 1.7 billion.