US real estate investment trust VICI Properties and Apollo Global Management funds have agreed to buy a Las Vegas resort from Las Vegas Sands in a $6.25bn (€5.18bn) deal.
VICI Properties is buying the land and real estate assets associated with the Venetian Resort Las Vegas and the Sands Expo and Convention Center (Venetian Resort) for $4bn and the Apollo funds have agreed to buy the operating company of the Venetian Resort for $2.25bn.
VICI Properties said subject to the closing of the deal at the end of the year, it 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 $250m and an initial term of 30 years, with two ten-year tenant renewal options.
The Venetian Resort is made up of a mix of hotel, gaming, food and beverage, entertainment, shopping and meeting and conference features.
The resort comprises the 35-storey three-winged luxury Venetian Tower hotel with 3,015 suites; the 12-storey Venezia Tower hotel with 1,013 suites and the 50-story Palazzo Tower luxury hotel tower with 3,064.
The Sands Expo Center, is one of the largest overall trade show and convention facility in the US, with approximately 1.2m sqft of exhibit and meeting space.
John Payne, president and COO of VICI Properties, said: “We have long admired the incomparable size, scale and quality of the Venetian Resort and are proud to opportunistically acquire the asset at an attractive, accretive cap rate for shareholders.
“Additionally, we are confident Apollo’s vision will greatly benefit the property’s operations for years to come.”
Apollo partner Alex van Hoek said: “The Venetian Resort is a marquee property in Las Vegas with an unmatched set of amenities to serve guests across hospitality, meeting events, gaming, and entertainment – categories that we believe are well-positioned for strong post-Covid recovery and long-term growth.”
This investment also underscores Apollo’a conviction in a strong recovery for Las Vegas as vaccines usher in a reopening of leisure and travel in the US and across the world, Van Hoek said.
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