Borgata Casino Resort
MGM Resorts International has announced its plans to sell the land beneath the Borgata Hotel Casino and Spa in Atlantic City, New Jersey. It’s believed that Vornado Realty Trust has purchased the land for $73 million, but the deal must first be approved by the New Jersey Casino Control Commission.
Earlier this year, MGM revealed plans to move out of Atlantic City, after the New Jersey Casino Control Commission deemed Pansy Ho, who owns a 50% stake in MGM Macau, an “unsuitable” business partner. While it was initially suggested MGM would sell its stake in the Borgata resort, it’s been alleged that the company wishes to cut its ties with the casino. Having found a buyer for the 11.6 acres of land beneath the casino resort, MGM is now in talks with buyers about its 50% stake in the Borgata.
The interest in the Borgata land has been seen as a “modest positive” by Joseph Greff, a financial analyst at J.P. Morgan. Greff suggested that the proposed deal between MGM and Vornado Realty Trust shows that “there are still buyers of Atlantic City assets out there, at least at the right price”.
