MGM Resorts International (“MGM Resorts”), MGM Growth Properties LLC (“MGP”) and Blackstone Real Estate Income Trust (“BREIT”) announced the closing of the previously announced transaction for a joint venture formed between MGP and BREIT to acquire the Las Vegas real estate assets of the MGM Grand and Mandalay Bay for $4.6 billion. In addition, BREIT has purchased approximately 4.9 million MGP Class A shares at a price of $30.67 per share.
In connection with the completion of the transaction, MGM Resorts has entered into a long-term triple-net master lease for both properties and will continue to manage, operate and be responsible for all aspects of the properties on a day-to-day basis, with the joint venture owning the properties and receiving rent payments. MGM has also provided a full corporate guarantee of rent payments.
The transaction was announced on January 14, 2020.