VICI Properties closes $4B Las Vegas resort deal

VICI Properties Inc. closed its acquisition of the land and real estate assets related to Las Vegas Sands Corp.'s Venetian Resort Las Vegas and Venetian Expo and Convention Center Las Vegas.

The casino real estate investment trust funded the $4.0 billion all-cash deal with proceeds from its common stock offerings, a $600 million draw under its recently upsized revolving credit facility and cash on hand.

Upon completion, VICI entered into a triple-net lease for the resort with an affiliate of funds managed by affiliates of Apollo Global Management Inc. The lease has an initial term of 30 years, with two 10-year renewal options.

The REIT noted that it also has the opportunity to fund up to an additional $1.0 billion development at the property through its Partner Property Growth Fund.

Madison Square Garden Entertainment Corp. is constructing an 18,000-seat venue called the MSG Sphere, which will rise on the Venetian Resort property and is slated to open in 2023. The land under the MSG Sphere is owned by VICI.

Morgan Stanley & Co LLC was lead strategic and financial adviser, while Deutsche Bank Securities was a financial adviser to VICI. Kramer Levin Naftalis & Frankel LLP was legal adviser to VICI, and Hogan Lovells was its tax adviser.