JUE 28 DE MARZO DE 2024 - 15:21hs.
A US$4.6 billion operation

MGM and Blackstone finalize deal for MGM Grand and Mandalay Bay

MGM Growth Properties (MGP) and Blackstone Real Estate Income Trust (BREIT) announced that the companies have entered into a definitive agreement to form a new joint venture to acquire the Las Vegas real estate assets of the MGM Grand Hotel & Casino Las Vegas and Mandalay Bay Resort and Casino for US$4.6 billion. Together, both properties comprise 9,743 rooms and approximately 300,000 square feet of casino space on the Las Vegas Strip.

In addition, BREIT will purchase US$150 million in MGP Class A shares. MGP will own 50.1% of the joint venture, and BREIT will own 49.9%.

“We are pleased to announce this partnership with BREIT, which illustrates the numerous opportunities available to grow our business and emphasizes the strong institutional demand for gaming real estate assets,” said James Stewart, CEO of MGP.

Jon Gray, Blackstone President & 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 U.S. Acquisitions for Blackstone Real Estate, commented: “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. We look forward to growing our partnership with MGM Resorts and MGM Growth Properties, a best-in-class company.”

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 US$292 million. MGP currently owns the Mandalay Bay real estate, and MGM Resorts currently owns the MGM Grand real estate.

This transaction is expected to close in the first quarter of 2020, subject to certain customary closing conditions.

Source: GMB