Blackstone’s non-exchange traded real estate investment trust and MGM Growth Properties (MGP) have teamed up to buy $4.6bn (€4.1bn) worth of gaming real estate assets in Las Vegas.

The joint venture has acquired the Las Vegas real estate of the MGM Grand and Mandalay Bay owned by MGM Resorts International and MGP respectively.

Together, the MGM Grand and Mandalay Bay comprise 9,743 rooms and approximately 300,000sqft of casino space across 226 acres on the Las Vegas Strip.

Announcing the deal, Blackstone Real Estate Income Trust (BREIT) said it will also buy $150m in MGP Class A shares.

Following the deal – which is expected to complete in the first quarter of this year – MGP will own 50.1% of the joint venture, and BREIT will own 49.9%.

The companies said, once the acquisition is completed, MGM Resorts will enter into a long-term lease agreement for both properties.

BREIT’s latest acquisition follows the $4.25bn acquisition of Bellagio Real Estate, an operator of Las Vegas gaming and entertainment properties, in a sale and leaseback deal with MGM Resorts International, in October last year.

Jon Gray, Blackstone President and COO, said: “This transaction reflects our continuing strong conviction in Las Vegas.

“We are pleased to once again partner with MGM Resorts, a world-class operator, as well as MGM Growth Properties.”

Tyler Henritze, head of US acquisitions for Blackstone Real Estate, said: “Similar to the Bellagio, owning these two premier Las Vegas assets under a long-term lease with MGM provides stable cash flow and excellent downside protection for our BREIT investors.”

James Stewart, CEO of MGM Growth Properties, said the deal ”illustrates the numerous opportunities available to grow our business and emphasizes the strong institutional demand for gaming real estate assets.”

Stewart said along with the contemplated cash redemption of $1.4bn of MGM’s operating partnership units as announced by MGM, the company expects this transaction to be accretive to adjusted funds from operations.