Benzinga | Mar 3, 2021 10:30AM EST

Sands Sells Las Vegas Properties For $6.25B: What Investors Need To Know

Las Vegas Sands Corp. (NYSE:LVS) is selling the Venetian Resort Las Vegas and the Sands Expo and Convention Center for approximately $6.25 billion.

What Happened: The divestiture is divided between two entities: VICI Properties will acquire the property and all associated assets for $4 billion, while Apollo Global Management (NYSE:APO) purchased the operations of the Venetian for $2.25 billion.

The Venetian opened in 1999 under the ownership of Sheldon Adelson, a co-founder of the COMDEX tech industry trade show. The property cost $1.5 billion to construct, a record for its time, and was built on the site of the Sands Hotel and Casino, which gained pop culture immortality for hosting the Rat Pack concerts in 1960.

The Sands Expo and Convention Center opened in 1990 behind the Sands Hotel. At the time of its opening, it was the second largest convention center in the world and the only privately owned and operated U.S. convention center.

Why It Happened: Adelson died Jan. 21. Las Vegas Sands Chairman and CEO Robert Goldstein said the transaction signals a new focus on markets outside of Nevada's gambling capital.

"As we announce the sale of The Venetian Resort, we pay tribute to Mr. Adelson's legacy while starting a new chapter in this company's history," said Goldstein.

"This company is focused on growth, and we see meaningful opportunities on a variety of fronts: Asia remains the backbone of this company and our developments in Macao and Singapore are the center of our attention."

Goldstein added that while the company will consider reinvestments in its existing properties, he also highlighted "potential development opportunities domestically where we believe significant capital investment will provide a substantial benefit to those jurisdictions while also producing very strong returns for the company."

LVS Price Action: Las Vegas Sands shares were up 1.2% at $65.72 at last check Wednesday.

Photo courtesy Michael Huey/Flickr.