Blackstone forms $4.6b Las Vegas hotel JV with MGM Growth Properties
MGM Growth Properties (MGP) and Blackstone Real Estate Income Trust (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 percent of the joint venture, and BREIT will own 49.9 percent.
Jon Gray, Blackstone president and 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.”
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 p