logo
Plus   Neg
Share
Email

MGM Growth, Blackstone To Buy Las Vegas Real Estate Of MGM Grand & Mandalay Bay

MGM Growth Properties LLC (MGP) and Blackstone Real Estate Income Trust, Inc. or "BREIT" agreed 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. MGP will own 50.1% of the joint venture, and BREIT will own 49.9%.

In addition, BREIT will purchase $150 million in MGP Class A shares.

It is expected to close the transaction in the first quarter of 2020.

Meanwhile, MGM Resorts International (MGM) 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 payments.

The MGM Grand and Mandalay Bay comprise 9,743 rooms, about three million square feet of meeting space and approximately 300,000 square feet of casino space across 226 acres on the Las Vegas Strip. MGM Resorts' initial annual rent will be $292 million.

MGP currently owns the Mandalay Bay real estate, and MGM Resorts currently owns the MGM Grand real estate.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Apotex Corp. recalled all lots of type 2 diabetes medication Metformin hydrochloride in the form of oral film-coated tablets for the potential presence of nitrosamine impurity, N-Nitrosodimethylamine (NDMA), above levels of the Acceptable Daily Intake Limit (ADI), the U.S. Food and Drug Administration or FDA said in a statement. Groupe Renault plans to cut about 14,600 jobs across the world and lower its production capacity. The plan includes almost 4,600 jobs reduction in France, through voluntary retirement and retraining. Amazon said it will convert 125,000 of the 175,000 temporary workers it hired in March amid the coronavirus pandemic, to permanent full-time employees in June. The e-commerce giant had hired the temporary employees in March to meet strong consumer demand amid the lockdown. The job openings were in Amazon's fulfillment centers and its delivery network.
RELATED NEWS
Follow RTT