LAS VEGAS (KTNV) — A new investment deal has valued the Bellagio casino at over $5 billion.
On Friday, Blackstone Real Estate Income Trust announced they had sold a 21.9% stake in the casino to Realty Income. In exchange, Realty Income has agreed to invest about $950 million into the property.
"Realty Income seeks to invest in high-quality real estate at scale in partnership with operators who are leaders in their respective industries," said Sumit Roy, Realty Income's President and Chief Executive Officer. "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."
Blackstone will retain 73.1% interest in the property while MGM Resorts International will retain a 5% stake. The deal estimates the Bellagio is worth $5.1 billion.
"This transaction demonstrates the strong investor demand for the high-quality assets we have assembled within Blackstone," said Nadeem Meghji, Head of Blackstone Real Estate Americas. "We look forward to our continued ownership of this asset, now in partnership with Realty Income."
The transaction with Realty Income is expected to close in the fourth quarter of 2023.
MGM Resorts International sold the Bellagio to Blackstone in November 2019 for $4.25 billion. However, they lease the property to MGM Resorts who operates and maintains the property. According to a press release, Blackstone and MGM still have another 26 years on their remaining agreement.
Blackstone also previously had stakes in Mandalay Bay and the MGM Grand after purchasing the properties in 2020 for $4.6 billion. However, they sold their interest in the properties two years later.
