LAS VEGAS -- MGM Resorts International is selling the MGM Grand and Mandalay Bay resorts and casinos on the Las Vegas Strip to a joint venture for about $2.5 billion.
The joint venture includes private-equity and real estate company Blackstone Group and MGM Growth Properties LLC. The joint venture will be owned 50.1% by MGM Growth Properties and 49.9% by Blackstone. It will also acquire the real estate assets of Mandalay Bay from MGM Growth Properties and lease both properties to MGM Resorts for an initial rent of $292 million.
MGM Resorts anticipates cash proceeds of approximately $2.4 billion.
MGM Resorts announced in October that it was selling the real estate of Bellagio to a joint venture with Blackstone for about $4.25 billion. Last month MGM Resort said it closed on the sale of Circus Circus Las Vegas and 37 adjacent acres for $825 million.
The deal announced is targeted to close in the first quarter.