Blackstone is selling a luxury resort casino and hotel on the Las Vegas Strip for $5.65bn (€4.8bn).

Blackstone Real Estate Partners (BREP) VII has agreed to sell the real estate assets of The Cosmopolitan of Las Vegas to a partnership between Cherng Family Trust, Stonepeak Partners and Blackstone Real Estate Income Trust.

As part of the deal, MGM Resorts International will acquire the operations of The Cosmopolitan and sign a long-term net lease with the partnership.

Blackstone bought The Cosmopolitan in Las Vegas in 2014 for $1.7bn and invested over $500m into the property to renovate guest rooms, build 67 new rooms and suites, enhance offerings and improve the gaming amenities.

Blackstone said following a review, BREP determined that separating The Cosmopolitan’s asset operations from the underlying real estate would result in an optimal outcome.

Tyler Henritze, the head of acquisitions Americas for Blackstone Real Estate, said: “This transaction underscores Blackstone’s ability to acquire and transform large, complex assets.

“As owners of The Cosmopolitan, we invested strategic capital and brought our expertise and experience in the lodging space to create the most dynamic destination on the Las Vegas Strip.”

Phill Solomond, the head of real estate at Stonepeak, said: “Stonepeak, in partnership with the Cherng Family Trust, believes this transaction represents a fantastic opportunity to invest in the underlying real estate of The Cosmopolitan of Las Vegas, a solid asset with an irreplaceable location, durable cash flows and the potential for additional upside.”

To read the digital edition of the latest IPE Real Assets magazine click here.