The real estate investment trust (REIT) MGM Growth Properties is acquiring the land on which the MGM Springfield in Massachusetts sits. It bought the land for $400 million. The sale is expected to close before the end of the year.
MGM will pay rent to MGP. MGM Resorts, which created MGM Growth Properties in 2015, and owns a 42 percent ownership in the REIT. MGM Growth owns eight MGM properties on the Las Vegas strip, and seven others in Michigan, Ohio, Mississippi, Maryland, New Jersey and New York.
J.P. Morgan gaming analyst Joe Greff commented, “For MGM, the transaction improves its already strong liquidity position, enhancing its ability to invest in its land-based casinos or BetMGM and return capital to shareholders.”
