Tuesday, Oct. 15, 2019 | 3:23 p.m.
MGM Resorts International has a deal in place to sell the Bellagio to a real estate investment trust for $4.25 billion.
In a joint news release, MGM and real estate firm Blackstone today announced the deal, which will not alter MGM’s operation of the Strip casino and resort.
“This transaction confirms the premium value of our owned real estate assets, highlights the unique value of Bellagio and solidifies our status as a premier operator of gaming and entertainment properties,” MGM Chairman and CEO Jim Murren said in a statement.
Murren predicted the deal would “create significant value for our shareholders.”
Blackstone Real Estate Income Trust will own the property when the deal closes, which is expected to happen before the end of the year, according to a news release.
As part of the deal, a subsidiary of MGM will sign a long-term lease and pay annual rent of $245 million. MGM will also retain a 5% ownership stake in the property, according to the release.
Once the deal closes, MGM will receive cash proceeds of about $4.2 billion.
“As big believers in MGM Resorts and Las Vegas, we are thrilled to partner with MGM to acquire the Bellagio on behalf of our BREIT investors,” Blackstone President and COO Jon Gray said in a statement. “We look forward to a long and productive partnership with this world-class company.”
Also on Tuesday, MGM announced a deal to sell Las Vegas property Circus Circus to an affiliate of billionaire casino mogul and Treasure Island owner Phil Ruffin.