MGM Resorts has completed the $900m purchase of Boyd Gaming’s 50 per cent share of the Borgata in Atlantic City and has transferred the real estate to MGM Growth Properties.

Boyd received $589m in cash after accounting for Borgata’s debt. It will also get 50 per cent of any future property tax settlements owed from Atlantic City, or $80m of the expected $160m.

MGP funded the property purchase with $260m in cash, $295m from its senior secured revolving credit facility and the issuance of 27.362m operating partnership units to an MGM subsidiary.

MGM also announced that its initial rent to MGP has been increased by $100m. $90m is to base rent, which now stands at $585m, and $10m will be applied to percentage rent, which is now $65m.