LAS VEGAS (KLAS) — MGM Resorts International announced it is selling another property. This time it’s the MGM Grand resort on the Las Vegas Strip.
It’s part of the company’s strategy to try and lighten up their assets. The company plans to sell the property and lease it back. MGM Resorts International agreed earlier this month to do that will the Bellagio resort. It sold a few weeks ago for $4.2 billion.
The plans were announced during a conference call with investors Wednesday.
MGM Chairman and CEO Jim Murren said they could announce the sale of the MGM Grand as early as the end of the year.
Under that agreement, MGM Resorts will lease and operate the resort.
“The way I would look at it is MGM Resorts has a strategy. The strategy is become asset light. It is executed on one stage of that at a multiple higher than anyone could have predicted here at Bellagio. It sets us up very well to work on other multiple transactions, which include wholly owned real estate, jointly owned real estate,” Murren said.
By downsizing assets, MGM Resorts wants to use the money for new projects in the future. For example, sports betting nationwide and on a new mega resort in Osaka, Japan.
Murren believes the new stadium and massive convention center expansion will also have a positive impact on MGM Resorts.