MGM Resorts International has agreed to sell the MGM Grand
and Mandalay Bay hotel casinos for $4.6 billion.
Real estate investment firm Blackstone Real Estate Income
Trust and real estate investment trust MGM Growth Properties have formed a
joint venture to acquire both Las Vegas properties, with Blackstone owning
49.9% and MGM Growth Properties 50.1%.
MGM Resorts will enter into a long-term lease agreement for
both properties, paying an initial annual rent of $292 million. MGM Resorts will
continue to operate the MGM Grand and Mandalay Bay.
The deal is expected to close sometime in the first quarter
“This transaction reflects our continuing strong conviction
in Las Vegas,” said Jon Gray, Blackstone president and COO. “We are pleased to
once again partner with MGM Resorts, a world-class operator, as well as MGM
into a similar agreement with MGM Resorts to acquire the Bellagio hotel casino
late last year for $4.2 billion.
Together, the MGM Grand and Mandalay Bay comprise 9,743 guestrooms,
approximately 3 million square feet of meeting space and roughly 300,000 square
feet of casino space on 226 acres on the Las Vegas Strip.