MGM Resorts International (“MGM Resorts”) (NYSE: MGM) and MGM Growth Properties LLC (“MGP”) (NYSE: MGP) introduced these days that they’ve completed the formerly imported transaction whereby MGM Resorts will gather the working belongings of the Hard Rock Rocksino Northfield Park from MGP and hire the real assets from MGP.
MGM Resorts also introduced it has officially rebranded the belongings as MGM Northfield Park.
“We are pleased to welcome the 950 employees of MGM Northfield Park into the MGM Resorts family,” stated Jim Murren, Chairman, and CEO of MGM Resorts. “Over the years, we have strategically and thoughtfully multiplied our presence in key U.S. Regions where we can leverage our expertise, maximize our move-advertising efforts and drive companywide growth. Today’s announcement reinforces this strategy. We continue to be excited for the future of MGM Northfield Park because it also cements itself as a market leader below the MGM logo and Chris Kelley’s management.””
MGM China opened its new multi-billion-dollar mega-resort in Macau’s glitzy Cotai strip on February 13 following multiple delays and last-minute hiccups in the government approval process. / AFP PHOTO / Anthony WALLACE (Photo credit should read ANTHONY WALLACE/AFP/Getty Images)
As attention for the transaction, MGM Growth Properties Operating Partnership LP (the “Operating Partnership”) redeemed approximately nine. Four million of its Operating Partnership devices from a subsidiary of MGM Resorts, representing a purchase rate of $275 million subject to customary modifications. Following the redemption, MGM Resorts’ financial ownership stake inside the Operating Partnership is about sixty-nine %.
“With the operational expertise of MGM Resorts, we expect MGM Northfield Park to keep growing as the #1 market-leading asset in northern Ohio,” said James Stewart, CEO of MGM Growth Properties. “With the addition of this property to the master hire, MGP shareholders will also benefit from our market-leading internet rent insurance in addition to our tenant’s big cash flows and robust credit profile. This further illustrates our continued capability to generate shareholder fee with appealing internet real property acquisition costs and the enhanced AFFO accretion due to the redemption of Operating Partnership units.”
MGM Northfield Park changed into added to the existing Master Lease, and the annual lease was extended through $60 million. Consistent with the Master Lease phrases, ninety percent of the increased rent may be contractually constant to grow at two percent in line with yr till 2022, and after that will keep growing furnished a tenant sales-to-lease ratio is met. The closing ten percentage is payable in percentage hire.
