Sands leaves Las Vegas as he agrees to sell strip assets for $ 6.25 billion

Nearly two months after the death of casino mogul Sheldon Adelson, Las Vegas Sands struck a deal to sell its properties on the Strip, which include the Venetian Resort and the Sands Expo and Convention Center, for $ 6.25 billion.

Las Vegas Sands announced the deal on Wednesday, saying the company will now look to its six properties in Asia, which generate 90% of the company’s revenue.

“… We pay tribute to Mr. Adelson’s legacy while opening a new chapter in the history of this company,” Chairman and CEO Robert Goldstein said on Wednesday. “This company is growth driven and we see significant opportunities on a variety of fronts. Asia remains the backbone of this company and our developments in Macao and Singapore are at the center of our attention. “

The announcement comes just over a month after the company’s last earnings call in January, when Goldstein said Las Vegas Sands planned to invest $ 5.5 billion in its five properties in Macau and one in Singapore. The Sands has a brand new $ 2 billion project on the Cotai Strip – the Londoner Macau, with a replica of the British Parliament and “Big Ben”.

The company has invested a total of $ 15 billion since Adelson opened its first casino in Macau in 2004.

“We have always believed that there is no better market for our company to invest than Macau,” Goldstein said on the Las Vegas Sands fourth quarter earnings conference call.

Sands said funds linked to Apollo Global Management, Inc. would acquire subsidiaries that hold the operating assets and liabilities of the Las Vegas company for approximately $ 1.05 billion in cash and 1.2 billion dollars. dollars in seller financing in the form of a term loan and collateral agreement. . Vici Properties Inc. will buy subsidiaries that own the real estate and real estate assets of The Venetian for $ 4 billion in cash.

Sands is also on the lookout for domestic development opportunities, which would require significant capital investment but provide “very good returns,” Goldstein said Wednesday.

In January, Goldstein said Las Vegas Sands was “looking” for a potential New York casino opportunity. “Well, we’ve been watching New York for about 100 years, it seems. We strongly believe in New York, ”he said on the company’s latest earnings call.

Las Vegas Sands has also said it is monitoring Texas, where it has spent millions of dollars lobbying for the establishment of a casino, according to public records.

“In the Texas, obviously, amazing market, we’re launching the tires over there as well,” Goldstein said. “You cannot deny the power of Texas, its size and its scale.”

The company’s exit from the US market follows the Covid-19 pandemic, which has beaten the Las Vegas Sands – the company recorded a net loss of $ 1.69 billion in 2020, compared to net profit of 2.7 billion dollars in 2019. In Asia, Sands reported positive earnings in Macau and Singapore for the fourth quarter of 2020.

Sands’ assets on The Strip helped give Adelson, who died Jan. 11 of complications from treatment for non-Hodgkin lymphoma, his name as a powerful actor in Vegas. The Venetian Resort stands over 35 floors with 3,000 suites and includes the Palazzo Tower, which has as many suites over 12 floors. The Sands Expo Center has 1.2 million square feet of meeting and exhibit space.

The company’s future could also include online gaming, a segment of the industry that Adelson never wanted to pursue.

“As our industry continues to evolve, particularly with respect to the digital marketplace, we are committed to exploring these possibilities,” said Patrick Dumont, President and COO of Sands.