While the sale could provide a boost to MGM Resorts’ shares, Katz said the long-term valuation of the repositioned company is uncertain. A securities filing in November revealed that MGM Resorts was in preliminary discussions with MGM Growth over the sale-leaseback of MGM Grand. Jefferies analyst David Katz said the announcement was expected. MGM Resorts spokeswoman Debra DeShong confirmed the Mandalay Bay sale includes the adjacent Four Seasons property, whose rooms are inside the Mandalay Bay tower, and the neighboring Delano hotel tower. Under the deal, MGM Resorts is selling MGM Grand’s real estate to the joint venture, and MGM Growth is selling the Mandalay Bay property to the partnership. MGM said it plans to use a substantial portion of the proceeds for stock buybacks and dividends. These sales, combined with the deals announced Tuesday, are expected to provide total net cash proceeds of $8.2 billion to MGM Resorts, according to the company. The casino operator eliminated more than 1,000 jobs, mostly in Las Vegas, last year as part of its “MGM 2020” cost-cutting plan sold the Bellagio’s real estate to Blackstone for around $4.2 billion in cash and sold Circus Circus and 37 acres of adjacent land for $825 million to Treasure Island owner Phil Ruffin late last year. The sell-off is the latest move by MGM to bolster its balance sheet. MGM Resorts will lease back MGM Grand and Mandalay Bay and continue to operate the hotel-casinos, as it does with the Bellagio.

Blackstone, which has been on a real estate buying binge in Southern Nevada for years, will own 49.9 percent of the venture.

MGM’s real estate investment trust, MGM Growth Properties, will own 50.1 percent of the joint venture and said the deal values the resorts at $4.6 billion. The deal is expected to close this quarter. New York financial giant The Blackstone Group, the Bellagio’s new landlord, announced Tuesday it agreed to form a joint venture to acquire the additional MGM Resorts International properties on the Strip. (Erik Verduzco / Las Vegas Review-Journal) Grand and Mandalay Bay are getting a new landlord in a $4.6 billion deal, just a few months after the Bellagio sold for billions. MGM Grand casino-hotel in Las Vegas, Tuesday, Jan.

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