Realty Income Corp. has signed a definitive agreement to invest approximately $950 million to acquire common and preferred equity interests from Blackstone Real Estate Income Trust (BREIT) in a new joint venture that owns a 95 percent interest in the real estate assets of The Bellagio Las Vegas.
Upon closing, Realty Income will invest approximately $300 million of common equity in the joint venture, subject to certain adjustments, to acquire a 21.9 percent indirect interest in the property, BREIT will retain a 73.1 percent indirect interest, and MGM Resorts International (MGM) will retain a 5 percent interest in the property. Realty Income will also invest $650 million to acquire a yield-bearing preferred equity interest in the joint venture.
The Bellagio, at the center of the Las Vegas Strip in Las Vegas, is subject to an existing triple net lease with approximately 26 years of remaining term and is operated and maintained by MGM. The AAA Five Diamond Resort features