VICI Properties to acquire MGM Growth Properties for $17bn

By Peter Lynch

VICI Properties has announced the acquisition of MGM Growth Properties (MGP) for $17.2bn.

VICI, MGP and MGM Resorts International - MGP’s controlling shareholder - today entered into a definitive agreement, known as the ‘Master Transaction Agreement’.

“After many years of growing both of our portfolios, combining them into one company will generate the best results for the shareholders of both companies,” said MGP CEO James Stewart. 

“The combined company will create a superior platform for delivering exceptional returns to MGP’s existing shareholders, by improving diversification, increasing scale, lowering cost of capital and benefiting from future growth.”

Approved by the board of directors of each of MGM Resorts, MGP and VICI, the transaction is expected to close in the first half of 2022, subject to customary closing conditions, regulatory approvals and approval by VICI stockholders. The VICI board of directors and management team will remain unchanged.

“Through this transformative strategic acquisition, we are merging MGP’s best-in-class portfolio into VICI’s best-in-class management and governance platform, creating the premier gaming, entertainment and leisure REIT in America,” said VICI Properties CEO Ed Pitoniak.

Alongside the closing of the transaction, VICI will enter into an amended and restated master lease with MGM Resorts, which will have a total annual rent of $860m. It includes an initial term of 25 years, with three 10-year tenant renewal options.

Bill Hornbuckle, CEO and President of MGM Resorts, commented: “This transaction unlocks the significant real estate value of our assets, enhances our financial flexibility and strengthens our ability to execute key growth initiatives. We look forward to our long-term partnership with VICI.”

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