MGM Resorts International reports it has officially closed the sale of the Circus Circus Las Vegas. MGM sold the resort and 37 adjacent acres for $825 million to an affiliate of Treasure Island owner Phil Ruffin.
MGM announced the sale of Circus Circus and fellow major Las Vegas resort Bellagio in October. (The Bellagio was sold to Blackstone Real Estate Income Trust.) At the time MGM said that the two sales are the first steps in an “asset light” strategy, in which it enters into contracts with property owners instead of owning property outright.
In its latest statement MGM said it plans to use the proceeds from this transaction to further its capital allocation strategy and enhance its strategic and operational flexibility.
MGM originally acquired Circus Circus when it acquired the Mandalay Resort Group in 2005. The Circus Circus has 3,767 guestrooms, an indoor amusement park, an RV park and a 37-acre festival grounds.