Las Vegas, NV – MGM Mirage sold the venerable Treasure Island Hotel & Casino, located across the street from Sands Expo Center, to Kansas real estate mogul Phil Ruffin for $775 million.
The largely cash deal trims MGM’s still-hefty portfolio of Strip properties at a time when the Las Vegas economy is struggling. It gives Ruffin, who owns gaming interests in the Midwest, an entry to the highly competitive neighborhood.
“We are very excited to be in a position to acquire such a stellar property in Treasure Island,” said Ruffin, who recently sold the New Frontier Hotel & Casino, his only other Las Vegas holding. “The property is in pristine condition, ideally located in the heart of the Strip and benefits from a wonderful team of outstanding employees.”
The transaction is expected to close by the end of the Second Quarter of 2009. The deal between MGM Mirage and Ruffin Acquisitions, LLC calls for $500 million in cash and $275 million in secured notes with $100 million payable not later than 175 days after closing and $175 million payable not later than 24 months after closing.
“This transaction creates value to our stakeholders through significantly increased liquidity and enhanced financial flexibility,” said MGM Mirage Chairman and CEO James Murren. Murren was elected chairman in November 2008.
Treasure Island offers 2,885 guest rooms, 18,000 square feet of flex meeting space and an 11,800 square-foot ballroom. Built in 1993, Treasure Island may be best known for its splashy outdoor pirate ship show. But it is even more attractive to trade show attendees due to the fact it is within easy walking distance of the Sands Expo. MGM Mirage acquired the landmark casino in 2000 when MGM and Mirage Resorts, Inc. merged.
Reach Shelly Ryser, director of hotel sales and marketing for Treasure Island at (702) 894-7711 or sryser@treasureisland.com
