MGM Resorts International, the parent of Macau casino operator MGM China Holdings Ltd, announced on Tuesday that it has finalised the sale – for US$546 million in cash – of the operations of MGM Northfield Park (pictured) to private equity funds managed by Clairvest Group Inc.
The casino firm expects estimated net cash proceeds after taxes and transaction costs to be approximately US$420 million.
MGM Northfield Park in Ohio, in the United States, offers 200,000 square feet (18,581 sq. metres) of gaming space. The venue has been temporarily shut for the period of the transition.
Bill Hornbuckle, chief executive and president of MGM Resorts, said in prepared remarks that MGM Northfield Park was a “market‑leading property”, with a “strong foundation”.
He added: “We extend our best wishes to the team and new ownership for continued success in the next chapter of the property’s evolution.”
The annouuncement cited Jonathan Halkyard, MGM Resorts’ chief financial officer, as saying:“The closing of this transaction underscores the value of MGM’s high-quality operations and provides an opportunity to divest a non-strategic regional asset at a significantly higher multiple than currently ascribed to our premium portfolio.”
Mr Halkyard stated: “The proceeds will be deployed in line with our priorities of maintaining a strong balance sheet, selectively investing in growth opportunities, and returning capital to shareholders.”
MGM Resorts said that, at the closing of the transaction, the master lease agreement with VICI Properties Inc – which included MGM Northfield Park – was amended, to reduce annual rent by US$53 million.
MGM Resorts is currently developing, in partnership with Japanese financial services firm Orix Corp and other local business interests, the MGM Osaka casino resort, due to launch at the end of 2030. Its cost is currently estimated at JPY1.51 trillion (US$9.45 billion).
