MGM Grand Sells Treasure Island

With its shares plummeting from a 12 month high of $89+ to a recent low of $8 the MGM Grand has decided to cash in a few chips and is selling one of its featured properties, Treasure Island to Phil Ruffin. The move will raise $775 million and MGM should book a sizable gain on the property that it acquired in its take over of Mirage Resorts in 2000.

Ruffin a real estate mogul who previously owned the New Frontier Hotel and Casino before selling it in 2007 has hotel and gambling holding across the US. In acquiring the TI Ruffin gets a 4 star 2900 room hotel, which after abandoning its family theme has become more popular. As part of its new theme Treasure Island began referring to itself as TI.

Wall Street reacted positively the the news as shares initially traded over $13 up over $2 before pulling back into the $11 range.