Sands Confirms Sale of Las Vegas Strip Properties For $6.25 Billion

Las Vegas Sands
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  • Namita Ghosh March 4, 2021
  • 1 Minute Read

In a move that was a long time coming, Las Vegas-headquartered Sands Corp has closed off its three prime properties on the Las Vegas strip to New York-based Apollo Global Management and VICI Properties for approximately $6.25 Billion. The sale involves Sands’ famous resorts, The Venetian and Palazzo, and the Sands Expo Convention Centre.

On Wednesday, company officials announced that Apollo and VICI’s affiliates will be acquiring the subsidiaries that control the real estate and operational business of the Sands’ strip properties. The company also disclosed the same in its latest filings to the Securities and Exchange Commission.

Top Sands executives admitted that selling The Venetian – a property that helped establish Sands at the top of the gaming industry – was bittersweet. Still, it would open up new growth prospects for the company.

Elaborating on the sale of these properties, Sands Chairman and CEO Robert Goldstein said, “The Venetian changed the face of future casino development and cemented Sheldon Adelson’s legacy as one of the most influential people in the history of the gaming and hospitality industry. As we announce the sale of The Venetian Resort, we pay tribute to Mr. Adelson’s legacy while starting a new chapter in this company’s history.”

 

The Deal

Affiliates of Apollo Global Management, Apollo Funds have entered a definitive agreement to acquire The Venetian and Sands Expo and Convention Center. As part of the deal, Apollo Funds will pay Sands Corp $2.25 Billion to acquire the operating company of The Venetian. $1.05 Billion will be paid in cash and $1.2 Billion in seller financing in the form of a term loan credit and security agreement.

At the same time, Venetian’s land and real estate assets would be acquired by VICI Properties, a real estate investment trust affiliated with Caesars Entertainment, for a sum of $4 Billion.

Talking about this significant development, Apollo Partner, Alex van Hoek, said – “The Venetian has one of the best teams in the industry, focused on delivering world-class customer service and experiences. We are honored and excited to support this talented and dedicated team and build upon the strong foundation set by Mr. Adelson and Las Vegas Sands.”

President and COO of VICI Properties, John Payne, commented, “We are thrilled to add The Venetian to our roster of best-in-class assets and believe the property is positioned to benefit from a rebound in Las Vegas under Apollo’s leadership. We look forward to what we expect will be a mutually beneficial and productive relationship with Apollo.”

 

Is the Sale a Good Move For Sands?!

Sands Corp has been exploring an exit from the U.S. for some time now. Founded by casino mogul the late Sheldon Adelson, the company had confirmed last November that it had hired Goldman Sachs & Co. LLC as the exclusive financial advisor to sell off its U.S. assets.

Adelson, who was suffering from non-Hodgkins lymphoma, passed away on January 11 this year at the age of 87, following complications arising from his health ailment.

 

 

The company has consistently re-iterated that the sale would help enhance Sands Corp’s impetus to increase its investments in Asian operations, primarily its six resorts in Macao, their hotel-casino in Singapore, and its digital marketplace.

 

Experts React

According to market experts, this is a good move by Sands Corp, and the company has received an excellent price for its assets. Following the announcement, Sands Corp’s stock price on NASDAQ touched 65.82, up 1.34%.

“This is the end of an era, and the city has been shaped in many positive ways by the Sands corporation over the years. However, it shows a great deal of confidence in the future of Las Vegas and the future of travel for this transaction to take place right now,” UNLV assistant professor of hospitality Amanda Belarmino said.

The founding partner of Las Vegas gaming and hospitality consulting firm The Strategy Organization, Josh Swissman, asserted that the sale signals confidence in the hospitality and convention industries. “There should be optimism and an understanding that the future is much brighter than the current environment today around gaming, international gaming, and group business. This is a huge vote of confidence that the convention industry is coming back to Las Vegas,” he said.

The transaction will now have to pass the mandatory regulatory and shareholder approval process.

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