Las Vegas Sands sells the Venetian, Sands Expo for $6.25B
Las Vegas Sands sold the Venetian Casino Resort and the Sands Expo and Convention Center for 6.25 billion US dollars.
As part of the two-part contract VICI Properties will buy the property and all assets associated with the Venetian Resort Las Vegas and Sands Expo for $ 4 billion. Apollo Global Management will operate the Venetian for $ 2.25 billion.
The global pandemic in Las Vegas, which closes the Strip, is the largest operator in the Las Vegas Sands. Sales growth disappeared in March last year, when the infections in the US spread. The company reported in January a quarterly loss of nearly 300 million US dollars.
The sale is only two months after the death of CEO and Chairman Sheldon Adelson, who transformed the landmark of Las Vegas, which was once a haunt of Frank Sinatra's Rat Pack into a towering, inspired by Italy complex.
Adelson, however, had for years pushed hard to Asia. Sands Adelson under expanded to Macau, the only place in China, where casino gambling legal. There he instructed his company to build land on which there was no, and pile up sand, to create the Cotai peninsula. Soon the revenue surpassed in Macao in Las Vegas.
Sands said on Wednesday that the company's focus will remain in Asia.
"This company is poised for growth and we see significant opportunities on several fronts," said Chairman and CEO Robert Goldstein said. "Asia remains the backbone of this company, and our developments in Macao and Singapore are the focus of our attention."
VICI will conclude with Apollo a triple-net lease for the Venetians. The lease has an initial annual total rent of USD 250 million and an initial term of 30 years with two renewal options for tenants with a term of 10 years.
The Venetian is located in Las Vegas Strip and features three luxury hotel towers with games, entertainment, shopping and dining. The resort has more than 7,000 all-suite rooms, 225,000 square playing area and 2.3 million square meters of meeting space.
Travel-related companies, from airlines to hotels and resorts, return with the introduction of several new vaccines.
Apollo partner Alex van Hoek said in a prepared statement that the deal "underscores our belief a strong recovery in Las Vegas because vaccines introduce a reopening of leisure and travel in the US and around the world."
The sale is expected to close in the fourth quarter.
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