MGM Resorts International has reached an agreement with Boyd Gaming Corp. to acquire Boyd's 50 percent interest in Borgata Hotel Casino & Spa in Atlantic City, NJ, for $900 million, it announced yesterday. MGM and Boyd currently are co-owners of Borgata's parent company, Marina District Development Holding Company. As such, its purchase of Boyd's stake will make MGM Borgata's sole owner.
"Borgata is the premier resort in Atlantic City and a great addition to our growing presence in the Northeast," said MGM Resorts International Chairman and CEO Jim Murren. "While the market continues to experience challenges, Borgata has outperformed and differentiated itself as the undisputed leader in the city."
After acquiring Boyd's share in Borgata, MGM Growth Properties (MGP) -- a real estate investment trust (REIT) spun off from MGM in April -- will acquire the property from MGM and lease it back to an MGM subsidiary.
"We are excited to add Borgata to the MGP portfolio, further diversifying our geographic presence," said James Stewart, CEO of MGM Growth Properties. "With this transaction, we are executing on our core growth strategy in prudently building a portfolio of high-quality assets with market-leading competitive positions."
Borgata opened in 2003 and underwent a $13 million renovation last year. Its acquisition by MGM is expected to be complete in the third quarter of this year.
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