Blackstone buys $4.3bn Las Vegas leisure properties from MGM Resorts
Blackstone’s non-listed real estate investment has bought a $4.25bn (€3.85bn) operator of Las Vegas gaming and entertainment properties in a sale and leaseback deal.
The transaction involves Blackstone Real Estate Income Trust (BREIT) and MGM Resorts International forming a 95%-5% BREIT-led joint venture to buy Bellagio Real Estate.
In a joint statement, the companies said 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 said it 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.
Blackstone already owns office, hospitality and residential assets in the Las Vegas real estate market.
Jon Gray, Blackstone president and COO, said: “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.”
Jim Murren, CEO of MGM Resorts, said: “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.”