Las Vegas Sands Corporation wants to exit the American gambling market as it announced deal-signing processes that aim to offload its three remaining domestic properties for a total of $6.25 billion.
The company, which is headquartered in Las Vegas, stated that the deal includes The Venetian Resort Hotel Casino, along with its landmark hotel The Palazzo, which features 3,000 rooms. Moreover, Sands are selling the property located nearby — Sands Expo and Convention Center.
These properties are being sold to the affiliates of Apollo Global Management Incorporated, a global investment alternative firm. Another buyer is also the investment trust Vici Properties Incorporated, which is basically a firm that spun off by Caesars Entertainment Incorporated.
According to the official press release Apollo Global Management Incorporated and Las Vegas Sands, Corporation decided that Apollo will hand over about $1.05 billion in cash in order to get operating liabilities and assets for Sands’ Las Vegas businesses. Moreover, Apollo will also take over a loan from the facilities, which is currently about $1.2 billion.
On the other hand, Sands made a more straightforward deal with Vici Properties Incorporated, which will have to pay around $4 billion to acquire the real estate associated with the three venues, as well as all related resources.
Las Vegas Sands Moves On
The details about Sands’ agreements were released more than seven weeks after the original founder of the company, Sheldon Adelson, passed away at the age of 87. Adelson was Chairman and CEO of Las Vegas Sands Corporation until his very end. He was a very respected figure in the US (and around the globe), as he managed to build his empire out of nothing, inspiring many young entrepreneurs to work harder.
Adelson was replaced by Robert Goldstein, who seems to continues Adelson’s plans of exiting the American market completely and focusing on Asia instead. As a matter of fact, Adelson has been working until his very end on growing his empire in Asia — Macau, to be precise.
The company has a subsidiary called Sands China Limited that focuses on the Chinese gambling market and owns several properties in Macau — The Venetian Macao, Sands Macao, The Plaza Macao, The Parisian Macao, and The Londoner Macao. Moreover, Sands is an owner and operator of one of the most breathtaking properties in the entire world — Marina Bay Sands in Singapore.
One of the most recent US properties that the Sands offloaded was Sands Casino Resort Bethlehem which was purchased by the Wind Creek Hospitality enterprise. It is part of the Poarch Band of Creek Indians, a federally-recognized tribe. Wind Creek Hospitality paid $1.3 billion to acquire the Pennsylvania property.
According to Goldstein, the sales in Nevada are a gateway to “a new chapter in the company’s history.” Now, Las Vegas Sands will be able to shift its focus entirely on Asia. But apart from Asia, the company will explore various “meaningful opportunities on a variety of fronts.” It means that there’s a possibility that the Sands Corporation will be there if gambling markets become available in highly-populated US areas, such as New York.