Blackstone to sell stake in MGM Grand, Mandalay Bay to VICI Properties
Reuters
Published Dec 01, 2022 10:49AM ET
Updated Dec 01, 2022 11:32AM ET
(Reuters) -Blackstone Inc will sell its 49.9% stake in the joint venture that owns the MGM Grand Las Vegas and Mandalay Bay resorts to co-owner VICI Properties (NYSE:VICI) Inc for about $1.27 billion in cash, the companies said on Thursday.
The deal includes the assumption of Blackstone (NYSE:BX) Real Estate Investment Trust's (BREIT) existing property-level debt that has a principal balance of $3 billion.
The New York-based private equity firm is paring some real-estate investments as interest rates climb and turmoil brews in the housing market. The company was set to sell a $400 million stake in Indian REIT Embassy, Reuters has reported.
The stake sale in the two Las Vegas resorts will generate a profit of more than $700 million for Blackstone in less than three years, including rent from the operator, the Wall Street Journal, which first reported the deal said.
"The sale of these assets is an excellent outcome for our BREIT investors and enables us to further concentrate BREIT's portfolio in its highest growth sectors, including logistics and rental housing," said Scott Trebilco, Senior Managing Director of Blackstone Real Estate.
The company had been ramping up investments in the real estate sector until earlier this year. In July, the company drew commitments worth $24.1 billion for its latest real estate fund.
VICI Properties, which owns properties such as the Caesars (NASDAQ:CZR) Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas, expects the deal to be immediately add to adjusted funds from operations (AFFO) per share upon closing.
The sale is expected to be completed early in the first quarter of 2023.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.