According to a Bloomberg report, Simon Property Group Inc.SPG and MGM Resorts International MGM have inked a deal for the sale of the latter's Shops at Crystals mall in Las Vegas to the former for $1.13 billion. Crystals is a division of CityCenter, which is jointly owned by MGM Resorts and Dubai-based investment firm, Infinity World Development Corp. The acquisition of Crystals with trophy assets and high-end tenants, is likely to be accretive to Simon Property, the Indianapolis, IN-based retail real estate investment trust ("REIT").
Located on the Las Vegas Strip in Paradise, NV, Crystals is a shopping mall and entertainment district, spanning over an area of 500,000 square feet. Per the news, this transaction is in sync with MGM Resorts' strategy to monetize assets when they are attractive. In fact, Las Vegas, NV-based MGM Resorts, which primarily owns and operates casino resorts through wholly owned subsidiaries, tried to sell the property 3 years ago as well. However, that effort was aborted as it could not find a good offer. The transaction is likely to close soon and MGM Resorts should also benefit from this deal.
Currently, both Simon Property and MGM Resorts carry a Zacks Rank #3 (Hold).
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