Growth Properties LLC and Blackstone Real Estate Income Trust, Inc.
today announced that MGP and BREIT have entered into a definitive
agreement to form a new joint venture
to acquire the Las Vegas real estate assets of the MGM Grand and
Mandalay Bay for $4.6 billion. In addition, BREIT will purchase $150
million in MGP Class A shares. MGP will own 50.1% of the joint venture,
and BREIT will own 49.9%.
At closing, MGM Resorts International will enter into a long-term triple net master lease for both properties and provide a full corporate guarantee of rent payments. MGM Resorts will continue to manage, operate and be responsible for all aspects of the properties on a day-to-day basis, with the joint venture owning the properties and receiving rent payments.
Together, the MGM Grand and Mandalay Bay comprise 9,743 rooms, approximately three million square feet of meeting space and approximately 300,000 square feet of casino space across 226 acres on the Las Vegas Strip. MGM Resorts’ initial annual rent will be $292 million. MGP currently owns the Mandalay Bay real estate, and MGM Resorts currently owns the MGM Grand real estate.
MGP is a REIT focused on the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts. Blackstone Real Estate has a deep history and expertise in the Las Vegas real estate market across office, hospitality and residential asset classes, including BREIT’s recent acquisition of the Bellagio for $4.25 billion.
This transaction is expected to close in the first quarter of 2020, subject to certain customary closing conditions.
Blackstone Real Estate