Blackstone JVs with MGM Resorts on massive Bellagio sale-leaseback

Blackstone Real Estate Income Trust and MGM Resorts International have entered into a $4.25 billion sale leaseback agreement of the real estate assets of the Bellagio. The parties will form a 95 percent Blackstone/5 percent MGM Resorts joint venture to acquire the assets. As part of the deal, MGM Resorts will lease the property from the joint venture and continue to manage, operate and be responsible for all aspects of the property on a day-to-day basis. MGM Resorts will sign a long-term lease and be responsible for all operations and capital expenditures of the property, with the joint venture owning the property and receiving rent payments. The transaction, which is slated to close by year end, represents 17.3 times the initial annual rent of $245 million.