MGM Growth Properties

MGM Growth Properties, LLC, commonly known as MGP, was a United States real estate investment trust focused on owning large-scale casino, resort, racino, and entertainment real estate. It was created by MGM Resorts International as a property-owning vehicle and was formally established on October 23, 2015. Rather than operating casinos directly as its principal business, MGP generally owned the underlying land and buildings and leased them to gaming operators under long-term triple-net arrangements. This structure separated real-estate ownership from hospitality and casino operations, allowing MGM Resorts to release capital while retaining operational control of many of its flagship properties. MGP became a public company through an initial public offering on April 25, 2016. At the IPO and related transactions, it acquired a substantial portfolio from MGM Resorts International, including The Mirage, Mandalay Bay, Luxor Las Vegas, New York-New York Hotel and Casino, Monte Carlo Resort and Casino, Excalibur Hotel and Casino, The Park, Gold Strike Tunica, MGM Grand Detroit, and Beau Rivage. The portfolio gave MGP exposure to major destination markets such as Las Vegas, Detroit, Biloxi, and Tunica while preserving MGM Resorts as the operating partner for most assets. The company expanded through additional acquisitions and property transactions. In August 2016, it acquired the real estate associated with Borgata Hotel Casino and Spa. It purchased the real estate of MGM National Harbor in Maryland in September 2017, Northfield Park in Ohio in July 2018, and Yonkers Raceway and Empire City Casino in New York in January 2019. These transactions broadened the portfolio beyond traditional Las Vegas resort properties into regional casinos and racinos. Operational responsibilities varied by asset: MGM Resorts operated many properties, while Hard Rock International initially managed Northfield Park before MGM Resorts acquired the operating business and rebranded the venue as MGM Northfield Park. MGP also pursued portfolio partnerships and asset-level joint ventures. In 2020, it formed a joint venture with Blackstone Real Estate Income Trust involving the real estate of Mandalay Bay and MGM Grand Las Vegas. MGP retained a 50.1 percent interest in the joint venture, while the transaction transferred significant real-estate value and changed the ownership structure of two of the Las Vegas Strip's largest resorts. In 2021, MGP agreed to acquire the real estate of MGM Springfield and lease it back to MGM Resorts. The company explored strategic combinations as well as acquisitions. In January 2018, MGP proposed acquiring Vici Properties, a real estate investment trust created through the restructuring of Caesars Entertainment's operating company. Vici's board rejected the proposal and proceeded with its own public offering. The companies later became acquirers and target in the opposite direction: in August 2021, Vici agreed to acquire MGP in a transaction valued at approximately $17.2 billion, comprising cash, assumed debt, and Vici equity. The acquisition closed on April 29, 2022. MGP consequently ceased to exist as an independent publicly traded REIT, while its former properties became part of Vici Properties' casino real-estate portfolio and continued in many cases to be leased to MGM Resorts.

MGM Growth Properties was created as part of MGM Resorts International's broader effort to separate casino real-estate ownership from gaming and hospitality operations. The company was formed on October 23, 2015, as a real estate investment trust focused on large-scale gaming properties. Its business model centered on owning the physical assets and leasing them to operators, especially MGM Resorts, through long-term arrangements that generally placed property-level expenses and responsibilities on the tenants. The company entered the public markets on April 25, 2016. Alongside its initial public offering, it acquired a substantial portfolio from MGM Resorts International. The assets included The Mirage, Mandalay Bay, Luxor Las Vegas, New York-New York Hotel and Casino, Monte Carlo Resort and Casino, Excalibur Hotel and Casino, The Park, Gold Strike Tunica, MGM Grand Detroit, and Beau Rivage. This initial portfolio combined iconic Las Vegas Strip resorts with regional gaming properties and established MGM Resorts as MGP's principal operating partner. MGP continued to expand through transactions with MGM Resorts. On August 1, 2016, it acquired the real estate associated with Borgata Hotel Casino and Spa. In September 2017, it acquired MGM National Harbor for $1.2 billion. The Maryland property strengthened MGP's presence in a major regional market near Washington, D.C. In July 2018, the company purchased Northfield Park, an Ohio racino, for $1.02 billion. Hard Rock International initially remained responsible for operating the property. In January 2019, MGP acquired Yonkers Raceway and Empire City Casino for $625 million and leased the property to MGM Resorts. The Northfield transaction later demonstrated the separation between real-estate ownership and operations that defined MGP. In April 2019, MGM Resorts acquired Northfield Park's operating business from MGP for $275 million in stock. MGM Resorts took over from Hard Rock International and rebranded the venue MGM Northfield Park, while MGP remained the landlord. The initial annual rent under the resulting lease was reported as $60 million. In February 2020, MGP entered into a joint venture with Blackstone Real Estate Income Trust involving Mandalay Bay and MGM Grand Las Vegas. The joint venture paid MGP $2.1 billion for the Mandalay Bay real estate and paid MGM Resorts $2.4 billion for the MGM Grand real estate. MGP held a 50.1 percent interest in the joint venture. The transaction gave MGP continued exposure to important Las Vegas assets while introducing a large institutional real-estate partner. MGP also pursued corporate combinations. In January 2018, it offered to acquire Vici Properties for an estimated $5.9 billion. Vici, which had been spun out of Caesars Entertainment Operating Company after its Chapter 11 restructuring, rejected the proposal and proceeded with an initial public offering. Vici completed that IPO on the New York Stock Exchange in February 2018. The two REITs later reversed roles: in August 2021, Vici agreed to acquire MGP for approximately $17.2 billion, a consideration package consisting of cash, assumed debt, and Vici equity. Before the acquisition closed, MGP agreed in May 2021 to acquire the real estate of MGM Springfield from MGM Resorts for $400 million and lease it back to the operator. Vici completed its acquisition of MGP on April 29, 2022. MGP therefore ceased to operate as a standalone public REIT. Its former properties became part of Vici Properties' casino real-estate platform, while many continued to be operated by MGM Resorts or other gaming companies under lease-based arrangements.

• 2022

  Acquisition by Vici Properties completed

  [1]MGM Growth Propertiesen.wikipedia.org

  Vici Properties completed its approximately $17.2 billion acquisition of MGP on April 29, ending MGP's independent corporate existence.

• 2021

  MGM Springfield real-estate agreement

  [1]MGM Growth Propertiesen.wikipedia.org

  MGP agreed to acquire MGM Springfield's real estate for $400 million and lease it back to MGM Resorts.

• 2020

  Blackstone joint venture

  [1]MGM Growth Propertiesen.wikipedia.org

  MGP established a joint venture with Blackstone Real Estate Income Trust for the real estate of Mandalay Bay and MGM Grand Las Vegas.

• 2019

  Yonkers Raceway and Empire City Casino acquisition

  [1]MGM Growth Propertiesen.wikipedia.org

  MGP acquired the property assets of Yonkers Raceway and Empire City Casino for $625 million.

• 2018

  Vici Properties acquisition proposal

  [1]MGM Growth Propertiesen.wikipedia.org

  MGP proposed acquiring Vici Properties, but Vici rejected the offer.

• 2018

  Northfield Park acquisition

  [1]MGM Growth Propertiesen.wikipedia.org

  MGP acquired Northfield Park in Ohio for $1.02 billion.

• 2017

  MGM National Harbor acquisition

  [1]MGM Growth Propertiesen.wikipedia.org

  MGP acquired MGM National Harbor's real estate for $1.2 billion.

• 2016

  Initial public offering and portfolio creation

  [1]MGM Growth Propertiesen.wikipedia.org

  MGP became publicly traded and acquired an initial portfolio of major MGM Resorts properties.

• 2016

  Borgata real-estate acquisition

  [1]MGM Growth Propertiesen.wikipedia.org

  The company acquired the real estate associated with Borgata Hotel Casino and Spa.

• 2015

  Company formed

  [1]MGM Growth Propertiesen.wikipedia.org

  MGM Growth Properties was formed on October 23 as a real-estate investment trust focused on casino and resort properties.

A specialized casino and entertainment real-estate investment trust designed to own gaming properties while leaving day-to-day operations to MGM Resorts International or other gaming operators.

• Gaming real estate · 2015

  Casino and resort real-estate portfolio

  MGP's principal offering was ownership of the physical real estate underlying casino resorts and regional gaming venues. The portfolio included destination resorts on the Las Vegas Strip, regional casinos, racinos, and entertainment-oriented properties. The company generally did not market these assets as consumer products; instead, it generated income through leases to operating companies, especially MGM Resorts International.

• Real-estate leasing · 2015

  Triple-net gaming property leases

  MGP used long-term lease structures in which gaming operators occupied and operated the properties while assuming significant property-level costs and obligations. This model was intended to produce relatively predictable rental income and allow operators to focus capital on casino, hotel, food-and-beverage, entertainment, and marketing activities.

• Joint-venture real estate · 2020

  Mandalay Bay and MGM Grand Las Vegas joint-venture interests

  Through its 2020 joint venture with Blackstone Real Estate Income Trust, MGP held a 50.1 percent interest in the real estate of Mandalay Bay and MGM Grand Las Vegas. The arrangement preserved MGP's participation in two major Las Vegas assets while bringing in an institutional capital partner.

• 2021

  Agreement to be acquired by Vici PropertiesM&A

  Background

  After operating as a standalone gaming REIT and previously attempting to acquire Vici, MGP agreed to combine with the now larger Vici Properties platform.

  Action taken

  Vici agreed to acquire MGP in a transaction valued at approximately $17.2 billion, consisting of cash, assumed debt, and Vici stock.

  Aftermath

  The transaction closed on April 29, 2022, and MGP ceased to exist as an independent publicly traded REIT.

  Total transaction value. $17.2 billion (Agreement announced August 2021; completed April 29, 2022)

  Source

• 2020

  Creation of Mandalay Bay and MGM Grand Las Vegas joint ventureStrategy

  Background

  MGP pursued a capital and ownership structure that maintained exposure to major Las Vegas resort real estate while involving an outside institutional investor.

  Action taken

  MGP formed a joint venture with Blackstone Real Estate Income Trust. The venture paid MGP $2.1 billion for the Mandalay Bay real estate and MGM Resorts $2.4 billion for the MGM Grand real estate; MGP retained a 50.1 percent interest.

  Aftermath

  MGP continued as the controlling partner in the joint venture, while Blackstone became a significant institutional participant in the assets.

  Combined property real-estate transaction values. $2.1 billion paid to MGP for Mandalay Bay and $2.4 billion paid to MGM Resorts for MGM Grand (February 2020)

  Source

• 2019

  Separation of Northfield Park ownership and operationsStrategy

  Background

  MGP owned Northfield Park while Hard Rock International initially managed the Ohio racino.

  Action taken

  MGM Resorts acquired the operating business from MGP for stock, assumed management, and rebranded the venue MGM Northfield Park. MGP retained the landlord role under a lease with initial annual rent reported at $60 million.

  Aftermath

  The transaction reinforced MGP's asset-owner model while placing casino operations with MGM Resorts.

  Operating-business transaction value. $275 million in MGM Resorts stock (April 2019)

  Source

• 2018

  Proposal to acquire Vici PropertiesM&A

  Background

  MGP sought to expand its casino real-estate platform through a combination with Vici Properties, another publicly traded gaming-focused REIT.

  Action taken

  MGP offered an estimated $5.9 billion for Vici Properties. Vici's board rejected the proposal and chose to continue toward its planned IPO.

  Aftermath

  Vici completed its IPO in February 2018. The proposed combination did not proceed, and Vici later acquired MGP instead.

  Estimated offer value. $5.9 billion proposal (January 2018)

  • Vici Properties — Vici's board rejected the proposal and proceeded with the company's planned initial public offering.

  Source

• 2022

  Vici Properties completes acquisition of MGM Growth Properties[1]MGM Growth Propertiesen.wikipedia.org

  M&A

  The acquisition closed on April 29, 2022, ending MGP's existence as an independent company and adding its casino real-estate assets to Vici's portfolio.

• 2021

  MGP agrees to acquire MGM Springfield real estate[1]MGM Growth Propertiesen.wikipedia.org

  M&A

  MGP agreed to purchase the real estate of MGM Springfield and lease it back to MGM Resorts under a long-term arrangement.

• 2021

  Vici Properties agrees to acquire MGM Growth Properties[1]MGM Growth Propertiesen.wikipedia.org

  M&A

  Vici announced an agreement to acquire MGP in a transaction valued at approximately $17.2 billion, including cash, assumed debt, and Vici stock.

• 2020

  MGP forms Mandalay Bay and MGM Grand Las Vegas real-estate joint venture[1]MGM Growth Propertiesen.wikipedia.org

  M&A

  MGP formed a joint venture with Blackstone Real Estate Income Trust covering the real estate of Mandalay Bay and MGM Grand Las Vegas, with MGP holding a 50.1 percent interest.

• 2019

  MGM Growth Properties expands into New York with Yonkers Raceway and Empire City Casino[1]MGM Growth Propertiesen.wikipedia.org

  M&A

  MGP acquired the real estate of Yonkers Raceway and Empire City Casino and leased the property to MGM Resorts.

• 2019

  MGM Resorts acquires Northfield Park operating business[1]MGM Growth Propertiesen.wikipedia.org

  Product generation

  MGM Resorts acquired Northfield Park's operating business from MGP for stock, assumed operational control from Hard Rock International, and renamed the venue MGM Northfield Park.

• 2018

  MGM Growth Properties proposes acquiring Vici Properties[1]MGM Growth Propertiesen.wikipedia.org

  M&A

  MGP made an estimated $5.9 billion proposal for Vici Properties. Vici's board rejected the offer and continued with plans for its own initial public offering.

• 2018

  MGM Growth Properties acquires Northfield Park[1]MGM Growth Propertiesen.wikipedia.org

  M&A

  MGP purchased the Ohio racino Northfield Park, initially retaining Hard Rock International as manager.

• 2017

  MGM Growth Properties acquires MGM National Harbor[1]MGM Growth Propertiesen.wikipedia.org

  M&A

  MGP acquired the real estate of MGM National Harbor, expanding its portfolio into the Washington, D.C. regional gaming market.

• 2016

  MGM Growth Properties becomes a public company and acquires an initial casino portfolio[1]MGM Growth Propertiesen.wikipedia.org

  Other

  MGP completed its initial public offering and acquired a group of casino and resort real-estate assets from MGM Resorts International, including major Las Vegas properties and regional casinos.

Showing the 10 most recent.

1. 1MGM Growth Propertiesen.wikipedia.org
2. 2MGM Growth Properties Appoints Kathryn Coleman And Charles Irving To The Board Of Directorsprnewswire.com
3. 3MGM Growth Properties LLC Announces Pricing Of Public Offering Of 19,000,000 Class A Sharesprnewswire.com
4. 4MGM Growth Properties Reports First Quarter Financial Resultsprnewswire.com
5. 5MGM Growth Properties Reports First Quarter Financial Resultsprnewswire.com
6. 6MGM Growth Properties Reports Fourth Quarter And Full Year Financial Resultsprnewswire.com
7. 7MGM Growth Properties Reports Fourth Quarter And Full Year Financial Resultsprnewswire.com
8. 8MGM Growth Properties Reports Second Quarter Financial Resultsprnewswire.com
9. 9MGM Growth Properties Reports Second Quarter Financial Resultsprnewswire.com
10. 10MGM Growth Properties Reports Third Quarter Financial Resultsprnewswire.com
11. 11MGM Growth Properties Reports Third Quarter Financial Resultsprnewswire.com
12. 12MGM Resorts International Announces Completion Of 37.1 Million MGP Operating Partnership Unit Redemptionprnewswire.com