LAS VEGAS — MGM Resorts International announced the sale Tuesday of two casinos that will significantly alter its portfolio of Las Vegas Strip properties and offer up cash.
The Las Vegas-based company said it is selling the Circus Circus hotel-casino for $825 million to Treasure Island casino owner Phil Ruffin. The company also sold the Bellagio for $4.25 billion.
MGM and the Blackstone investment group are forming a joint venture that is purchasing the Bellagio and leasing it back to an MGM subsidiary for $245 million annually.
MGM Resorts will get a 5% ownership stake in the joint venture and about $4.2 billion in cash. Both deals are expected to close by the end of the year.
MGM previously announced the creation of a committee that would look into its real estate to determine how to monetize it. The Bellagio transition sees that resort join many other properties on the Strip that are already structured under lease-back deal.