News
Australian
Government
pledges big
bushfire
recovery fund
he Australian Government has announced
Blackstone to acquire
MGM Grand and
Mandalay Bay for
$2.5bn
MGM Resorts International is selling the
MGM Grand and Mandalay Bay resorts and
owned 50.1% by MGM Growth Properties
and 49.9% by Blackstone.
It will also acquire the real estate assets
of Mandalay Bay from MGM Growth
Properties and lease both properties to
MGM Resorts for an initial rent of $292m.
The total value of the two transactions is
$4.6bn.
Blackstone has been making inroads into
casinos on the Las Vegas strip, for about the events and hospitality industries in the
$2.5bn. past year. In October 2018, it became owner
The sale was reported by the Los Angeles
of the UK’s NEC Group for a reported $1bn.
Times, which said the sale would be to It is also the owner of international events
a joint venture between private equity organiser Clarion Events.
company Blackstone and MGM Growth
Properties LLC. The joint venture will be
The deal is targeted to close in the first
quarter of 2020.
a new AUD$76m (US$51.25m) fund to help
the country’s tourism industry recover.
The industry-specific fund is part of a wider
AUD$2bn pledged by the Morrison Government, as part
The joint venture will be owned 50.1% by MGM
Growth Properties and 49.9% by Blackstone.
of plans to counteract the bushfire crisis which has been
sweeping through the country.
The Australian Tourism Export Council (ATEC)
welcomed the news, saying: “We applaud the key
initiatives nominated to help the inbound tourism sector
to recover, including an increase in international media
and social media influencer engagement along with
support for the Australian Tourism exchange, which is
our largest annual tradeshow.
“While tourism businesses on the frontline of recent
bushfires have an immediate need for support in their
recovery, our global reputation as a holiday destination
has been significantly impacted and we need to act
urgently to reassure visitors that Australia is open for
business.”
Prime Minister Scott Morrison described the bushfire
crisis as the tourism sector’s “biggest challenge in living
memory”. Tourism Minister Simon Birmingham added:
“We need tourists to visit fire-affected regions. It’s about
saving the jobs of Australians working in tourism.”
AUD$46m of the fund will be put towards promoting
Australia as a destination on the international market,
while the remaining AUD$30m will be for promoting
regional tourism.
UK Government
agrees rescue
plan for FlyBe
Now, Government ministers have
agreed to work with FlyBe to help create a
repayment plan for tax debt reported to top
£100m (US$130m). UK Business Secretary
Andrea Leadsom said the deal would keep
the company operating, although specifics
have not been disclosed.
The firm’s owners have also agreed to
he UK Government has pump more money into the loss-making
agreed a rescue plan for airline.
regional airline FlyBe, which
is facing serious financial
troubles.
It was reported in January that the
w w w.exhibitionworld.co.uk
British Airways, one of FlyBe’s main
competitors, have come down against the
deal. BA CEO Willie Walsh, in a letter to UK
Transport Secretary Grant Shapps, said it
airline, which is a major carrier of was a “misuse” of public funds, and that
passengers from regional areas of the UK to taxpayers should not be footing the bill for
mainland Europe, was facing collapse. the airline’s mismanagement.
Issue 1 2020
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