Las Vegas Sands Corp. sold both of its Las Vegas Strip properties Wednesday and will change its name to Sands to reflect the fact it no longer owns any property in the city.
The company sold Venetian, Palazzo and the Sands Convention Center to a private equity firm and a real estate investment trust. VICI Properties and Apollo Global Management purchased the properties for a combined $6.25 billion.
According to a CNN report, Apollo bought the operating company for $2.25 billion and VICI is buying the underlying land and real estate for $4 billion.
VICI Properties was formed during Caesars Entertainment’s Chapter 11 bankruptcy when Caesars proposed splitting the company into a Real Estate Investment Trust that owns the land and an operating company that would run the day-to-day operations. While VICI clearly has roots in Las Vegas, this is Apollo said this is the first major investment they were making in the city.
“This investment also underscores our conviction in a strong recovery for Las Vegas as vaccines usher in a reopening of leisure and travel in the United States and across the world,” the company said in a statement.
Last October, there were rumors circulating that this sale was imminent so that the company could focus more of its efforts on its properties in Asia. The U.S.-based casinos only accounted for 13% of the company’s total revenue in 2019, while Singapore and Macau made up the majority of the company’s earnings.
Before his passing, Sheldon Adelson was lobbying for legalized brick-and-mortar gambling in Texas. He died in January, but the company’s efforts have not stopped. While it doesn’t have any property in the U.S. anymore after its most recent sale, Texas legalization would give the company a reason to focus on the American casino market again.