A look at transactions here and abroad
Properties are completing transactions in the U.S. and across the globe. Here are the details:
MGP to acquire MGM Springfield real estate for $400M
MGM Resorts International (MGM Resorts) and MGM Growth Properties LLC (MGP) have entered into a definitive agreement whereby MGP will purchase the real estate assets associated with MGM Springfield in Western Massachusetts. MGM Resorts will lease the property from MGP and continue to operate the property following the consummation of the transaction, with no expected change to its employees, vendors, customers and the community.
MGP will pay total consideration of approximately $400 million in cash (which may include cash on hand or cash from financings, including borrowings under MGP’s revolving credit facility). MGM Springfield will be added to the existing master lease between MGM Resorts and MGP, and the rent payment to MGP will increase by $30 million, of which $27 million will be base rent and $3 million will be percentage rent. The sale is expected to close in the fourth quarter of 2021, subject to regulatory approvals and other customary closing conditions.
As of March 31, 2021, MGM Resorts held a 42% economic interest in the operating partnership of MGP. Evercore served as financial advisor to the Conflicts Committee of MGP’s Board of Directors.
Kasada to acquire 414-key Safari Hotels & Conference Centre
Funds advised by Kasada Capital Management revealed the acquisition of the 414-key Safari Hotels and Conference Centre in Windhoek, Namibia. This transaction will be made through Kasada Hospitality Fund LP (Kasada) and remains subject to approval by the Namibian Competition Commission.
The hotel complex is located close to Windhoek’s city center and adjacent to Eros Airport. It consists of the 215-key Safari Court Hotel, the 199-key Safari Hotel and Namibia’s foremost Meetings, Incentives, Conferencing, Exhibitions (MICE) venue, the Safari Court Conference Centre that includes a 17,222 sq.-ft. (1,600-sq.-m.) grand ballroom that can hold up to 2,400 delegates.
Kasada will rebrand the hotels utilizing the management skills, expertise and marketing resources available from its strategic partnership with Accor and its portfolio of international hotel brands. The Safari Court Hotel will be converted to Mövenpick, and the Safari Hotel will become an ibis Styles. By investing more than $8 million (N$100m) in this refurbishment, Kasada will further improve the existing conference facilities, which are a hub for local, regional and international events in Namibia, creating a go-to destination for both business and leisure guests. This second acquisition from Kasada further reinforces its position as a leading hospitality platform in Sub-Saharan Africa with a focus on delivering solutions to its local partners across cycles and varying degrees of complexity.