Blackstone Real Estate Income Trust(BREIT) and MGM Resorts International will form a 95%/5% BREIT-led joint venture to acquire the real estate assets of the Bellagio casino in Las Vegas for $4.25 billion in a sale and leaseback transaction, said Blackstone on Tuesday.
MGM Resorts will lease the property from the joint venture and continue to manage, operate and be responsible for all aspects of the property on a day-to-day basis.
MGM Resorts will sign a long-term lease and continue to be responsible for all operations and capital expenditures of the Bellagio, with the joint venture owning the property and receiving rent payments.
“As big believers in MGM Resorts and Las Vegas, we are thrilled to partner with MGM to acquire the Bellagio on behalf of our BREIT investors. We look forward to a long and productive partnership with this world-class company,” said Jon Gray, Blackstone President & COO.
“This transaction confirms the premium value of our owned real estate assets, highlights the unique value of Bellagio as a premier asset in gaming and solidifies our status as a premier operator of gaming and entertainment properties. We look forward to partnering with Blackstone on this asset and believe that this transaction will create significant value for our shareholders,” said Jim Murren, Chief Executive Officer of MGM Resorts.
The sale is expected to close by year end and is subject to customary closing conditions.