The Massachusetts Gaming Commission has OK’d a 45-year lease of the land and building of the MGM Springfield from real estate investment trust (REIT) that the gaming company spun off and is selling to. The sale is expected to close before the end of the year.
The commissioners said the length of the lease would ensure stability. The commission included language for the contingency of the REIT, MGM Growth Properties, or its executives being found to be unsuitable under state gaming law.
Creation of the spin-off gives MGM Resorts International more money for investing in other ventures. The parent company will sell the real estate for $400 million to MGM Growth Properties and then lease it back for $30 million a year.
A similar deal was approved for Plainridge Park Casino and a REIT called Gaming and Leisure Properties in 2014.
