MGM Closes $546 Million Sale of Northfield Park Operations to Clairvest
The structure replaces MGM as operator under a new 25-year lease to a Clairvest affiliate.
Overview
- MGM Resorts closed Tuesday on the $546 million cash sale of MGM Northfield Park’s operations to funds managed by Clairvest Group.
- VICI Properties signed a separate 25-year triple-net lease with a Clairvest affiliate that starts at $53 million in annual base rent with three 10-year renewal options.
- MGM’s master lease with VICI was amended to cut MGM’s annual rent by $53 million, and VICI said its total rent collected does not change.
- MGM expects about $420 million in net cash after taxes and costs and says it will prioritize debt strength, selective growth, and returns to shareholders.
- Clairvest and co-investors invested US$165 million for a majority stake in the operations and partnered with RRC Gaming Management to run the property.