(Tiper Stock Exchange) – Realty incomea US real estate management company listed on the NYSE, has signed a agreement with Blackstone Real Estate Income Trust (BREIT)the branch of Blackstone real estate investment firm, to invest approximately $950 million in the acquisition of a new joint venture that owns a 95% stake in the real estate assets of the Bellagioiconic Las Vegas hotel and casino. The deal values the asset at $5.1 billion.
Specifically, Realty Income will invest approximately $300 million in the joint venture to acquire a indirect participation of 21.9% in the ownership, BREIT will retain an indirect stake of 73.1% e MGM Resorts International will retain a 5% stake in the property. Realty Income will also invest $650 million to acquire an interest-bearing preferred interest in the joint venture.
The Bellagio, located in the center of the Strip in Las Vegas, Nevada, is subject to a lease with about 26 years of life remaining and it is operated and maintained by MGM. Blackstone bought the Bellagio from MGM for $4.25 billion in 2019.
The resort has approx 4,000 rooms and suites spread across two towers, 157,000 square feet of gaming space and 200,000 gross square feet of meeting and event facilities. Situated on a 77-acre campus, the resort also includes the iconic Bellagio Fountains and numerous Michelin-starred restaurants.
(Photo: David Vives on Unsplash)