VICI Properties completes $1.27b acquisition of MGM Grand Las Vegas and Mandalay Bay JV

VICI Properties has closed on the previously announced acquisition of the remaining 49.9 percent interest in the joint venture that owns MGM Grand Las Vegas and Mandalay Bay Resort from Blackstone Real Estate Income Trust (BREIT) for cash consideration of approximately $1.27 billion and VICI’s assumption of BREIT’s pro-rata share of existing property-level debt.

The cash consideration was funded through a combination of cash on hand and proceeds from the settlement of forward equity sale agreements. 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 annum through March 2030.

The properties, situated at the south end of the Las Vegas Strip in Las Vegas, Nevada, are subject to an existing triple-net lease agreement between the joint venture and MGM Resorts International. The lease remains unchanged and will generate annual rent of approximately $310 million upon the commencement of t