An international real estate brokerage firm in Las Vegas has purchased a local casino advising business, speculating that casino property deals will further increase.
The CBRE Group on Wednesday announced its acquisition without disclosing terms.
Union Gaming in Las Vegas was founded in 2008, and has an office in Hong Kong, and offers a complete set of investment banking services. The company claims to have raised capital worth $28 billion and completed $2 billion in mergers and acquisitions.
The casino real estate market in Las Vegas has seen a lot of activity in recent years, and CBRE’s acquisition takes place as the tourist sector begins to recover from the effects of the coronavirus epidemic.
As per the latest news release, CBRE’s Las Vegas-based casino investment sales team will establish a new company with in-charge Michael Parks and the Union Gaming employees. The news further mentioned that Bill Lerner- co-founder of Union Gaming, will take over as CBRE’s global head of investment gaming bank.
CBRE claims to have over 100,000 workers who serve customers in over 100 countries. CBRE employs 80 workers in Las Vegas, which includes the new Union Gaming employees.
According to Pete Schippits, head of CBRE’s Mountain-Northwest division, Union Gaming has developed “deep contacts” across the casino sector internationally.
Many of these Las Vegas individual resorts came under the trading hands for more than nine figures from top casino operators like the MGM Resort and Caesars Entertainment in the last few years.
MGM successfully sold Bellagio’s real estate to The Blackstone Group, a New York-based investment firm, for more than $4 billion in 2019 and leased it back for an initial yearly fee of $245 million.
Many casinos in Las Vegas work without a separate landlord. However, the real estate investment trusts are in their early state.