VICI Properties, Apollo funds to buy Venetian Resort Las Vegas for $6.25bn

VICI Properties to buy Venetian Resort's real estate in Las Vegas
Venetian Resort Las Vegas

VICI Properties and Apollo Global Management have entered into a definitive agreement to acquire the Venetian Resort Las Vegas and the Sands Expo and Convention Center in Las Vegas from Las Vegas Sands Corporation for a total transaction value of $6.25 billion.

Under the terms of the transaction, Apollo Funds will acquire the operating company of The Venetian, an iconic Las Vegas property and one of the largest integrated resorts in the world, for $2.25 billion. VICI Properties will purchase the land and real estate assets of The Venetian for $4.0 billion in cash, representing a 6.25% cap rate.

Simultaneous with the closing of the transaction, VICI Properties will enter into a triple-net lease agreement for the Venetian Resort with an affiliate of the Apollo Funds.

The lease will have an initial total annual rent of $250.0 million and an initial term of 30 years, with two ten-year tenant renewal options. 

”There are few assets in American commercial real estate that deserve to be called monumental, but the Venetian Resort is truly monumental in both its spatial grandeur and in its economics. Upon closing of the transaction, VICI will be honored to help steward the legacy of what Mr. Adelson and the Las Vegas Sands team, led by Rob Goldstein and Patrick Dumont, have built,” said Ed Pitoniak, Chief Executive Officer of VICI Properties.

Apollo Partner Alex van Hoek said, “The Venetian is America’s premier integrated resort, with an unrivaled set of amenities to serve guests across hospitality, meeting events, gaming, and entertainment – categories that we believe are well positioned for strong recovery and long-term growth. The team at Las Vegas Sands, under the leadership and vision of Sheldon Adelson, built an irreplaceable asset that is renowned for its quality, scale and integrated offerings, and we see significant opportunity to invest in and accelerate its growth. This investment also underscores our conviction in a strong recovery for Las Vegas as vaccines usher in a reopening of leisure and travel in the United States and across the world.”