The agreement will see MGP pay MGM Resorts consideration of $637.5m for investments made to reposition Park MGM and NoMad Las Vegas, which was formerly known as Monte Carlo Resort and Casino.
The annual rent between MGM Resorts and MGP will also increase by $50m.
Jim Murren, Chairman and CEO of MGM Resorts, said: “The creation of Park MGM and NoMad Las Vegas, in conjunction with T-Mobile Arena, Park Theater and the entire mid-Strip neighborhood, further solidify our position as a global resort and entertainment leader.
"MGM Resorts will continue to deliberately reduce our owned real estate through accretive transactions in the future. MGP is an attractive partner to achieve this goal. We remain committed to our stated strategic objectives, including reducing our ownership stake in MGP."
