- Legal States
Fiona Simmons March 3, 2021 3 min read
Sands Sells Las Vegas Properties for $6.25Bn
Las Vegas Sands is to offload its Las Vegas real property and operations for an aggregate $6.25 billion, a month after founder Sheldon Adelson’s death.
Apollo Global Management and VICI Acquire Las Vegas Empire
On March 3, casino giant Las Vegas Sands announced that it has entered into an agreement to sell its Las Vegas real property and operations. The deal includes The Venetian Resort Las Vegas, as well as the Sands Expo and Convention Center, and amounts to a combined $6.25 billion.
The subsidiaries that operate the casino’s US business will become the property of private equity business Apollo for $1.05 billion in cash and $1.2 billion in seller financing in the form of a loan credit and security agreement. Meanwhile, VICI Properties will acquire subsidiaries that hold the real estate assets of The Venetian for about $4 billion in cash.
Recently, Apollo acquired International Game Technology (IGT)’s Italian B2C operations for $1.15 billion through its finance subsidiary Gamenet Group. In December last year, Apollo received shareholder approval for the acquisition of casino operator Great Canadian Gaming in a $1.9 billion deal. The company also invested €500 million in European gaming conglomerate Sakza Group.
VICI Properties is a real estate investment trust that spun off from Caesars in 2017. Ed Pitoniak, CEO of VICI Properties said that Sheldon Adelson is one of the great American place-makers of the last century with building The Venetian Resort. He added that the property is truly monumental and VICI will be proud to steward the legacy of Adelson and his team.
What Are Las Vegas Sands’ Next Steps?
Las Vegas Sands’ chairman and CEO Robert Goldstein said that Asia with Macau and Singapore remains at the forefront of the company’s strategy. The operator will also pursue development in the digital marketplace, according to the press release. In January, Goldstein said that Las Vegas Sands is exploring opportunities to enter the online sports betting and iGaming market.
“Our long-held strategy of reinvesting in our Asian operations and returning capital to our shareholders will be enhanced through this transaction. Additionally, as our industry continues to evolve, particularly as it relates to the digital marketplace, we are committed to exploring those possibilities.”Patrick Dumont, president/COO, Las Vegas Sands
The company’s president and COO Patrick Dumont highlighted the role of The Venetian in the history of Las Vegas Sands. However, he said he is confident that Apollo and VICI are the right companies to lead the property into the future.