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Sign in Sign up for a FREE subscriptionVICI Properties to acquire remaining interest in MGM Grand Las Vegas and Mandalay Bay JV from BREIT
Blackstone Real Estate Income Trust (BREIT) and VICI Properties have jointly entered into a definitive agreement in which VICI, currently owner of a 50.1 percent interest in the joint venture that owns MGM Grand Las Vegas and Mandalay Bay Resort, will acquire BREIT’s 49.9 percent interest in the joint venture for cash consideration of approximately $1.27 billion and VICI’s assumption of BREIT’s pro-rata share of the existing property-level debt.
The property-level debt has a principal balance of $3 billion, matures in 2032, and bears interest at a fixed rate of 3.558 percent per year through March 2030.
The properties, situated at the south end of the Las Vegas Strip, are subject to an existing triple-net lease agreement between the joint venture and MGM Resorts International. The lease will generate annual rent of approximately $310 million upon the commencement of the next rental escalation on March 1, 2023.
The MGM Grand Las Vegas/Mandalay Bay triple-ne
