MGM Growth Properties LLC and Blackstone Real Estate Income Trust Inc. agreed to form a joint venture for the acquisition of the real estate assets of the MGM Grand and Mandalay Bay in Las Vegas for $4.6 billion.
Blackstone Real Estate also agreed to acquire $150 million in MGM Growth's class A shares. MGM Growth will own 50.1% of the venture, while Blackstone Real Estate will own 49.9%.
The properties comprise 9,743 rooms, about 3 million square feet of meeting space and about 300,000 square feet of casino space. MGM Resorts International will enter into a long-term lease for both properties upon closing of the acquisition, which is expected to occur in the first quarter, subject to certain customary closing conditions.
More details to follow...