Sands sells iconic Las Vegas hotels and Expo Center for $6.25 billion
Las Vegas Sands sold its expansive property in Sin City to VICI Properties Inc. The sale will include the company’s famous properties - the Palazzo at the Venetian Resort and the Sands Expo Convention Center.
The sale of the famous LV casino resort
VICI Properties announced its acquisition of the Las Vegas Sands’ real estate on Wednesday, March 3 via press release. It was explained that the entire expanse of LVS’ real estate assets connected with its Venetian Resort in Las Vegas, Nevada was bought by VICI for $4 billion in cash.
On the other hand, Apollo Global Management Inc. agreed to buy the operations of the Venetian Resort for $2.25 billion. The investment management firm is paying $1.2 billion in secured term loan from Las Vegas Sands and the remaining balance would be paid for in cash.
With the sale, LVS is automatically withdrawing from its gambling operations in the famous Las Vegas Strip. The property was sold after the efforts to change the essence of the casino business everywhere.
The next step for LVS
As per CNBC, Las Vegas Sands sold its property as it would like to invest more in Asia. Prior to the COVID-19 crisis, the company’s assets in Asia covered about 90% of its profits with big investments plans to expand in Singapore and Macau.
“This company is focused on growth, and we see meaningful opportunities on a variety of fronts,” LVS CEO and chairman Robert Goldstein said. “Asia remains the backbone of this company and our developments in Macau and Singapore are the center of our attention.”
The sale was made just two months after the passing of Sheldon Adelson, the founder, chairman and CEO of LVS. Once the contracts are signed and the deal with Apollo is finally closed, the management team’s plan for the newly-acquired property is to continue the operations of the Venetian.
AP News reported that the transactions are expected to close by the fourth quarter of this year. The sale will transfer the ownership of three luxury hotel towers with gaming, dining, entertainment and shopping facilities to VICI Properties. The hotel resort has over 7,000 suite rooms, 2.3 million square feet of meeting space and 225,000 square feet of gaming area.