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MGM Resorts International has agreed to sell the MGM Grand and Mandalay Bay casino and resort properties in Las Vegas to a new joint venture between MGM Growth Properties LLC and private equity giant Blackstone Real Estate Income Trust, Inc.
The deal is priced at $4.6 billion. MGM Resorts will continue to manage and operate the two properties on a day-to-day basis through a long-term master lease. The joint venture will own the properties and receive rent payments.
MGM Growth Properties (MGP) is a real estate investment trust that acquires, owns and leases large entertainment and leisure resorts. Blackstone Real Estate Income Trust, Inc. (BREIT) has also been active in the buying and selling of prominent hospitality properties, including its acquisition of the Bellagio in Vegas for $4.25 billion last year.
“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,” MGP CEO James Stewart said in a written statement.
“This transaction reflects our continuing strong conviction in Las Vegas,” Blackstone President Jon Gray said. “We are pleased to once again partner with MGM Resorts, a world-class operator, as well as MGM Growth Properties.”
MGM Grand and Mandalay Bay have a total of 9,743 rooms, about three million square feet of meeting space and 300,000 square feet of casino space. It covers 226 acres of coveted real estate on the Las Vegas Strip.
This story is developing. Check back with Skift for updates.
Photo Credit: MGM Resorts International has agreed to sell the Mandalay Bay casino resort along with the MGM Grand, both in Las Vegas, to a joint venture including Blackstone. Bridget Bennett / Bloomberg
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