GGRAsia – Sands says sale of Venetian Las Vegas done, focus in Asia

Sands says sale of Venetian Las Vegas done, focus in Asia

Feb 24, 2022 Newsdesk Latest News, Macau, Singapore, Top of the deck, World

Casino operator Las Vegas Sands Corp announced on Wednesday the completion of the US$6.25-billion sale of The Venetian Resort in Las Vegas, Nevada, in the United States. The buyers are affiliates respectively of private equity firm Apollo Global Management Inc, and VICI Properties Inc. The latter is a real estate investment trust involved in the casino property sector.

The Venetian Resort complex (pictured in a file photo) includes The Venetian and Palazzo properties and the Venetian Expo.

In March last year, U.S.-based Las Vegas Sands said it had an agreement to sell its Las Vegas venues and operations for US$6.25 billion.

“Looking forward from the sale, we believe our strong balance sheet and an industry-leading portfolio of integrated resorts in Macau and Singapore, position the company to experience a new era of opportunity and growth,” said Las Vegas Sands chairman and chief executive Robert Goldstein, quoted in a company press release announcing the completion of The Venetian Las Vegas sale.

Las Vegas Sands is the parent of Macau casino operator Sands China Ltd, and of Marina Bay Sands Pte Ltd, the operator of the Marina Bay Sands casino resort in Singapore.

In Macau, the group is close to completing a US$2.2-billion revamp of its Cotai portfolio. It has included the rebranding of its Sands Cotai Central property as The Londoner Macao. The latter launched in February 2021.

In Singapore, Las Vegas Sands will spend US$3.3 billion to expand Marina Bay Sands. On top of that, the group recently announced an additional US$1-billion upgrade of its existing hotel space at Marina Bay Sands, to be completed in phases during 2022 and 2023.

Mr Goldstein said in his prepared remarks featured in Wednesday’s release, that the “top priorities” for Las Vegas Sands included “heavily reinvesting in our portfolio in Asia”, “pursuing new land-based development opportunities” and executing the firm’s “long-term strategy for participating in the digital marketplace.”

When the firm announced in March last year the agreement to sell The Venetian Resort in Nevada, Las Vegas Sands had mentioned it was “focused on reinvestment in Asia and high-growth opportunities in new markets.”

Under the sale terms for The Venetian Resort complex in Las Vegas, an entity called Pioneer OpCo LLC – an affiliate of Apollo Global Management – is acquiring subsidiaries that hold the operating assets and liabilities of the casino group’s Las Vegas business. The consideration involves approximately US$1.05 billion in cash, and US$1.2 billion in seller financing in the form of a term loan credit and security agreement.

That part of the deal received regulatory approval last week.

As part of disposal process, a subsidiary of Vici Properties will acquire for approximately US$4.0 billion in cash, Las Vegas Sands subsidiaries that hold the real estate and related assets of the Las Vegas business.

Despite the sale of its Nevada properties, Las Vegas Sands will maintain its corporate headquarters in Las Vegas, confirmed Patrick Dumont, the company’s president and chief operating officer, also quoted in Wednesday’s press release.

Goldman Sachs & Co LLC acted as exclusive financial advisor to Las Vegas Sands for the deal. The legal advisor was Skadden, Arps, Slate, Meagher & Flom LLP.