- Sands Corp confirms $6.25B Venetian Resort Sale
- Terms and Conditions of Acquisition
- Sands Corp will now focus strongly on its Asian operations
Las Vegas Sands Corp confirmed that its Venetian Resortin Las Vegas , Nevada, has been sold for $6.25 billion to affiliates of VICI Properties Inc. and private equity firm Apollo Global Management.
The company had confirmed in March 2021 that it would sell its properties and operations in Las Vegas.
The Venetian Resort includes the Venetian Expo and the Venetian and Palazzo properties.
Terms and Conditions of Acquisition
Goldman Sachs & Co LLC was the exclusive financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP was the legal advisor to the company for the agreement.
Under the terms of the deal, Pioneer OpCo LLC, an affiliate of Apollo, will acquire the subsidiary companies of Las Vegas Sands that possess the operating assets and liabilities of its properties on the Vegas strip. The said part of the agreement was approved by the Nevada Gaming Commission on 17 February 2022. The acquisition would involve circa $1.05 billion hard cash and seller financing of $1.2 billion as a term loan credit and security agreement.
The VICI Properties affiliate will acquire those Las Vegas Sands subsidiaries in charge of the real estate and related assets of the strip property. The real estate acquisition totals approximately $4 billion. Las Vegas Sands president and chief operating officer, Patrick Dumont confirmed that despite the take-over, the company will still lead the corporate headquarters in Las Vegas.
Sands Corp. Set Sights on Reinvestment in Asian Properties
Las Vegas Sands CEO Robert Goldstein said that the company was looking at a new era of further growth and opportunity after the sale of the Venetian Resort. He said Las Vegas Sands Corp. would focus on reinvestment in its operations and properties in Asia. The CEO made the remarks in a press release on 23 February. Goldstein also spoke about the company’s commitment to executing its long-term strategy to make a foray into the digital marketing space along with its pursuit of new land-based development opportunities in the continent as its top priorities.
The group is close to completing a $2.2 billion revamp of its Cotai property in Macau. Launched in February 2021, the process involved the rebranding of the Sands Cotai Central as The Londoner Macao.
As far as the expansion plans for the Marina Bay Sands in Singapore are concerned, Las Vegas Sands will spend $3.3 billion for the scheme. Recently, the company announced an additional upgrade of $1 billion for its hotel renovation project at the Singapore resort. The process will be completed in a phased manner over 2022 and 2023.