Las Vegas Sands finalises $6.25bn Venetian divestment

Las Vegas Sands has finalised the $6.25bn divestment of The Venetian Resort Las Vegas and the Sands Expo and Convention Center to affiliates of Apollo Global Management and Vici Properties.

The transaction, initially detailed in March 2021, will see an affiliate of funds managed by affiliates of Apollo Global Management acquire the operations of venues for $2.25bn, with Vici gaining all land and real estate assets for $4bn.

Following the sale, LVS has voiced great belief in the future potential of the facilities as well as the Las Vegas area in general, emphasising that its importance to international leisure and tourism “will only grow in the future”. The company will also maintain its corporate headquarters in the city.

The immediate focus now turns to the Asian market, where LVS says that a “long-term” commitment includes a $1bn reinvestment at Marina Bay Sands in Singapore and the completion of the $2.2bn renovation of The Londoner in Macau.

Robert Goldstein, Las Vegas Sands Chair and Chief Executive Officer, explained “Looking forward from the sale, we believe our strong balance sheet and an industry-leading portfolio of integrated resorts in Macao and Singapore, position the company to experience a new era of opportunity and growth.

“The top priorities for our company include heavily reinvesting in our portfolio in Asia while at the same time pursuing new land-based development opportunities and executing our long-term strategy for participating in the digital marketplace.”

The Venetian, lauded as a “marquee property on the Las Vegas strip” by Apollo, features three hotel towers that include more than 7,000 all-suite rooms, 225,000 square feet of gaming space, which includes approximately 210 table games and 1,480 slot machines and electronic table games, and 2.3 million square feet of meeting space.

“We’re thrilled to complete the acquisition of The Venetian, a premier Las Vegas resort that’s backed by a world-class team,” said David Sambur, Apollo Partner and Co-Head of private equity. 

“Over the last year, we have only grown more excited by the recovery and outlook for Las Vegas and in particular The Venetian, where we can invest behind an unrivaled set of guest amenities and experiences. 

“Sheldon Adelson was a true visionary in building The Venetian more than two decades ago and we look forward to sustaining its success in this next chapter.”

Simultaneous with the closing of the transaction, Apollo has entered into a triple-net lease agreement with real estate investment trust Vici, this includes an initial annual rent of $250m and term of 30 years, with two ten-year tenant renewal options. 

Additionally, Vici also has the opportunity to fund up to an additional $1bn development at the property through the company’s Partner Property Growth Fund.

John Payne, President and Chief Operating Officer of VICI Properties, said, “We are thrilled to complete the acquisition of this remarkable world-class asset.

“Over the past two quarters, the Venetian’s financial results far exceeded our initial underwriting expectations, demonstrating the significant attractiveness of the property to consumers and proving the relevance of Las Vegas as a global entertainment destination.

“We are excited about our partnership with Apollo in Las Vegas and have confidence in their vision for the continued success of the Venetian.”