Casino operator MGM Resorts has struck a deal to acquire an Ohio casino from MGM’s real estate investment trust (REIT) MGM Growth Properties (MGP).
On Wednesday, MGM announced that it had agreed to pay MGP $275m for the operating assets of the Hard Rock Rocksino Northfield Park casino, which MGP acquired in April from Milstein Entertainment for $1.06b.
At that time, MGP, which functions purely as a landlord and doesn’t oversee any gaming operations, strongly hinted that it would eventually sell the Rocksino’s gaming operations to an unspecified third party (hint hint) while retaining ownership of the 110-acre land plot.
MGP was created in 2015 as a way for MGM to realize some short-term billions, and now serves as MGM’s primary landlord. MGM said the Rocksino deal will increase its annual payments to MGP by $60m, 90% of which will be fixed and subject to 2% annual increases until 2022.