Sands Corp. to Sell Off All Las Vegas Assets for $6.2B

The Venetian Resort Las Vegas is comprised of three all-suite towers — the Venetian, the Palazzo and the Venezia. The sale also includes the Sands Expo and Convention Center. (Photo courtesy of The Venetian Resort Las Vegas)

LAS VEGAS — Las Vegas Sands Corp. (NYSE: LVS) has agreed to sell its Las Vegas properties and operations, including The Venetian Resort Las Vegas and the Sands Expo and Convention Center, for an aggregate purchase price of approximately $6.2 billion.

Under the terms of the agreement, VICI Properties Inc. (NYSE: VICI) will acquire all of the land and real estate assets associated with the Venetian for $4 billion in cash, representing a capitalization rate of 6.2 percent. Affiliates of Apollo Global Management Inc. (NYSE: APO) will acquire the operating company of the Venetian for $2.2 billion, of which $1.2 billion is in the form of a secured term loan, and the remainder is payable in cash.

The closing of the transactions is subject to customary closing conditions, including regulatory approvals. It is expected to be completed by the end of the year.

Regarding the sale, Sands says it plans to focus on reinvestment in Asia and pursue new growth prospects.

“Asia remains the backbone of this company and our developments in Macao and Singapore are the center of our attention. We will always look for ways to reinvest in our properties and those communities,” says Robert Goldstein, chairman and CEO of Sands. “There are also potential development opportunities domestically, where we believe significant capital investment will provide a substantial benefit to those jurisdictions while also producing very strong returns for the company.”

Simultaneous with the closing of the transaction, VICI and Apollo will enter into a triple-net lease agreement for the resort. The lease will have an initial total annual rent of $250 million and an initial term of 30 years, with two 10-year renewal options.

The Venetian property comprises three hotel towers. The Venetian Tower rises 35 stories with 3,015 suites; the Palazzo Tower rises 50 stories with 3,064 suites; and the 12-story Venezia Tower features 1,013 suites. There is approximately 225,000 square feet of gaming space, 210 table games and 1,480 slot machines. Additionally, the property includes Grand Canal Shoppes, an enclosed area of retail, dining and entertainment space.

Sands Expo Center, a trade show and convention facility, features 1.2 million gross square feet of exhibit and meeting space. The Venetian Resort also includes a 1.1 million-square-foot meeting and conference facility that links to Sands Expo Center.

Additionally, the Venetian and Madison Square Garden Entertainment Corp. are building a 400,000-square-foot music and entertainment venue at the property. Known as the MSG Sphere at The Venetian, the 18,000-seat venue is slated to open in 2023.

“The Venetian Resort is a marquee property in Las Vegas with an unmatched set of amenities to serve guests across hospitality, meeting events, gaming and entertainment — categories that we believe are all well positioned for strong post-COVID recovery and long-term growth,” says Alex van Hoek, partner with Apollo.

New York City-based Apollo is an alternative investment management firm. It manages capital for hundreds of fund investors worldwide. Its stock price closed at $50.71 per share on Wednesday, March 3, up from $42.81 per share one year ago.

VICI describes itself as an experiential real estate investment trust. It owns gaming, hospitality and entertainment destinations, including Caesars Palace. VICI’s portfolio consists of 28 gaming facilities comprising over 47 million square feet. Its stock price opened at $28.53 per share on Wednesday, March 3, up from $24.72 per share one year ago.

Sands is a developer and operator of world-class resorts. Its stock price opened at $66.26 per share Wednesday, March 3, up from $55.90 per share one year ago.

— Kristin Hiller

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