One of the Las Vegas Strip’s most iconic casinos has a brand new investor.
Realty Income Corporation, The Monthly Dividend Company, and Blackstone Real Estate Income Trust collectively introduced Aug. 25 that Realty Income has signed a definitive settlement to take a position roughly $950 million to accumulate widespread and most well-liked fairness pursuits from BREIT in a brand new three way partnership that owns a 95% curiosity in the true property property of The Bellagio Las Vegas.
Upon closing, Realty Income will make investments roughly $300 million of widespread fairness within the three way partnership, topic to sure changes, to accumulate a 21.9% oblique curiosity within the property, BREIT will retain a 73.1% oblique curiosity, and MGM Resorts International will retain a 5.0% curiosity within the property.
Realty Income may even make investments $650 million to accumulate a yield-bearing most well-liked fairness curiosity within the three way partnership.
The Bellagio is topic to an present triple web lease with roughly 26 years of remaining time period and is operated and maintained by MGM.
The resort options roughly 4,000 guestrooms and suites throughout two towers, 157,000 sq. toes of gaming house and 200,000 gross sq. toes of state-of-the-art assembly and occasion services. Located on a 77-acre web site, the resort additionally contains the Fountains of Bellagio and a number of Michelin Star eating places.
“Realty Income seeks to invest in high-quality real estate at scale in partnership with operators who are leaders in their respective industries. This transaction to acquire an interest in the Bellagio, an iconic property, represents our second investment in the gaming industry and exemplifies the advantages of our size, scale and access to capital,” stated Sumit Roy, Realty Income’s President and Chief Executive Officer.
“Where you invest matters, and this transaction demonstrates the strong investor demand for the high-quality assets we have assembled within BREIT,” stated Nadeem Meghji, Head of Blackstone Real Estate Americas.
“The Bellagio is an iconic property in the heart of the Las Vegas Strip, and we look forward to our continued ownership of this asset, now in partnership with Realty Income. This partial sale represents another terrific outcome for BREIT shareholders.”