Sands to Sell Las Vegas Properties for $6.25 Billion as Company Looks to Asia
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
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
Write to Dave Sebastian at firstname.lastname@example.org
(END) Dow Jones Newswires
March 03, 2021 07:07 ET (12:07 GMT)
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