Sands sells its Las Vegas business for $6.25 billion
Hospitality and gambling industry giant Las Vegas Sands plans to sell its Las Vegas real estate and package of operations for a combined price of $6.25 billion. The organization is now focused on reinvesting in Asia and promising growth opportunities in emerging markets.
Sands will sell its largest U.S. businesses, including The Venetian Resort Las Vegas casino resort and the famous Sands Expo convention center. The buyer of the operating assets will be funds owned by Apollo’s private equity business. The sale of the two properties will total $2.25 billion ($1.05 billion in cash and $1.2 billion in financing through a loan agreement and security agreement).
The remaining Venetian property and related assets will be sold to a large investment fund, VICI Properties, for $4 billion. In 2017, VICI separated from Caesars to become an independent representative of the U.S. gambling business.
Alex van Hook, a partner at Apollo, said, “The Venetian is America’s best integrated resort with an unparalleled array of guest amenities with all the necessary infrastructure. In addition, the operator’s entertainment is, in our opinion, well suited for strong recovery and long-term growth. The Las Vegas Sands team, under the leadership and vision of Sheldon Adelson, has created an indispensable asset. It is renowned for its quality, scale and integrated offerings. We see significant investment opportunities.”
Vici Properties President and COO John Payne was not left out: “We are excited to expand our portfolio of market-leading experiential assets with the iconic Venetian resort complex. We have long admired the incomparable size, scale and quality of this facility. Proud to have acquired it at a shareholder-friendly rate. Apollo’s vision will greatly benefit the company’s operations for years to come.”
Las Vegas Sands says both buyers are a good fit to create a springboard for new growth opportunities for the brand as the group seeks to pursue a long-standing strategy of reinvesting in Asian markets.
Recall that the new Macau casino resort will have more than $450 million in profits by 2023.