By Dave Sebastian

 

Las Vegas Sands Corp. said it has agreed to sell its Las Vegas properties for about $6.25 billion as it looks to reinvest in its core Asia operations.

The operations being sold include the Venetian Resort Las Vegas and the Sands Expo and Convention Center. After the death of company founder Sheldon Adelson, executives in January said it will continue to invest in Sands' Singapore and Macau casinos, which generate most of the company's revenue.

"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," Chairman and Chief Executive Officer Robert Goldstein said Wednesday. "Asia remains the backbone of this company and our developments in Macao and Singapore are the center of our attention."

Funds tied to Apollo Global Management Inc. will buy subsidiaries that hold the operating assets and liabilities of the Las Vegas business for about $1.05 billion in cash and $1.2 billion in seller financing in the form of a term loan credit and security agreement, the company said Wednesday. Vici Properties Inc. will buy subsidiaries that hold the real estate and real estate-related assets of the Venetian for about $4 billion in cash.

The Apollo funds will also enter into a long-term, triple net lease agreement with Vici for the Venetian, Apollo and Vici said.

Executives have said the company was considering expansion opportunities in the U.S. in New York and Texas. The company will also explore opportunities in the digital marketplace, President and Chief Operating Officer Patrick Dumont said.

The Covid-19 pandemic has roiled the casino industry with temporary shutdowns, reduced travel and limited occupancies under social-distancing. Hopes for a recovery this year depend on how many tourists and business travelers will return as vaccines are distributed.

 

Write to Dave Sebastian at dave.sebastian@wsj.com

 

(END) Dow Jones Newswires

March 03, 2021 07:07 ET (12:07 GMT)

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