New-York-based Blackstone Real Estate Income Trust (BREIT) has agreed to buy Bellagio Resort and Casino in Las Vegas from MGM Resorts International, a hospitality and entertainment firm.
Under the deal, BREIT will hold a 95 percent stake in the Blackstone-led venture that is buying Bellagio, whereas MGM Resorts is keeping 5 percent stake and will continue to operate the property.
Furthermore, BREIT, managed by BX REIT Advisors L.L.C., a subsidiary of Blackstone, and MGM Resorts expect to complete the $4.3 billion sale and leaseback transaction in the fourth quarter of 2019.
With the proposed acquisition, the firms will secure an initial annual rent of $245 million. More so, the lease is set to feature an initial 30-year term with two 10-year extension options for MGM Resorts.