Blackstone Real Estate Income Trust to Acquire the Bellagio Real Estate from MGM Resorts International for $4.25 Billion in S...
October 15 2019 - 4:10PM
Business Wire
Blackstone Real Estate Income Trust (“BREIT”), and MGM Resorts
International (“MGM Resorts”) (NYSE: MGM) announced today that
BREIT and MGM Resorts will form a 95%/5% BREIT-led joint venture to
acquire the real estate assets of the Bellagio for $4.25 billion in
a sale-leaseback transaction.
As part of the transaction, MGM Resorts will lease the property
from the joint venture and continue to manage, operate and be
responsible for all aspects of the property on a day-to-day basis.
MGM Resorts will sign a long-term lease and continue to be
responsible for all operations and capital expenditures of the
Bellagio, with the joint venture owning the property and receiving
rent payments.
Jon Gray, Blackstone President & COO, said: “As big
believers in MGM Resorts and Las Vegas, we are thrilled to partner
with MGM to acquire the Bellagio on behalf of our BREIT investors.
We look forward to a long and productive partnership with this
world-class company.”
Jim Murren, Chief Executive Officer of MGM Resorts, said: “This
transaction confirms the premium value of our owned real estate
assets, highlights the unique value of Bellagio as a premier asset
in gaming and solidifies our status as a premier operator of gaming
and entertainment properties. We look forward to partnering with
Blackstone on this asset and believe that this transaction will
create significant value for our shareholders.”
Blackstone Real Estate has a deep history and expertise in the
Las Vegas real estate market across asset classes including office,
hospitality and residential.
The sale is expected to close by year end and is subject to
customary closing conditions.
Advisors
Weil, Gotshal & Manges LLP served as legal counsel to MGM
Resorts and PJT Advisors and J.P. Morgan served as financial
advisors to MGM Resorts. Citigroup Global Markets Inc. and Morgan
Stanley & Co served as financial advisors to BREIT. Morgan
Stanley & Co, J.P. Morgan, and Citigroup Global Markets Inc.
served as BREIT’s financing advisors. Simpson Thacher &
Bartlett LLP served as legal counsel to BREIT.
About Blackstone Real Estate
Blackstone is a global leader in real estate investing.
Blackstone’s real estate business was founded in 1991 and has $154
billion of investor capital under management. Blackstone is one of
the largest property owners in the world, owning and operating
assets across every major geography and sector, including
logistics, multifamily and single family housing, office,
hospitality and retail. Blackstone’s opportunistic funds seek to
acquire undermanaged, well-located assets across the world.
Blackstone’s Core+ strategy invests in substantially stabilized
real estate globally through regional open-ended funds focused on
high-quality assets, and Blackstone Real Estate Income Trust, Inc.
(BREIT), a non-listed REIT, invests in U.S. income-generating
assets. Blackstone Real Estate also operates one of the leading
global real estate debt businesses, providing comprehensive
financing solutions across the capital structure and risk spectrum,
including management of Blackstone Mortgage Trust (NYSE: BXMT).
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is an S&P 500® global
entertainment company with national and international locations
featuring best-in-class hotels and casinos, state-of-the-art
meetings and conference spaces, incredible live and theatrical
entertainment experiences, and an extensive array of restaurant,
nightlife and retail offerings. MGM Resorts creates immersive,
iconic experiences through its suite of Las Vegas-inspired brands.
The MGM Resorts portfolio encompasses 28 unique hotel offerings
including some of the most recognizable resort brands in the
industry. Expanding throughout the U.S. and around the world, the
company in 2018 opened MGM Springfield in Massachusetts, MGM COTAI
in Macau, and the first Bellagio-branded hotel in Shanghai. The
81,000 global employees of MGM Resorts are proud of their company
for being recognized as one of FORTUNE® Magazine's World's Most
Admired Companies®. For more information visit us at
www.mgmresorts.com.
Forward-Looking Statements
Certain information contained in this press release constitutes
“forward-looking statements” within the meaning of the federal
securities laws and the Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by the use
of forward-looking terminology or the negatives thereof. These may
include BREIT’s financial projections and estimates and their
underlying assumptions, statements about plans, objectives and
expectations with respect to future operations, and statements
regarding future performance. Such forward-looking statements are
inherently uncertain and there are or may be important factors that
could cause actual outcomes or results to differ materially from
those indicated in such statements. BREIT believes such factors
include whether BREIT will complete the transaction referenced
herein within the timeframe anticipated or at all, whether the
joint venture and lease agreements referenced herein will be
consummated on the terms described herein or at all, and the
accuracy of financial or operating information reported or provided
by MGM and whether such past operations will be an accurate
predictor of future operations. BREIT believes these factors also
include but are not limited to those described under the section
entitled “Risk Factors” in its prospectus and its annual report for
the most recent fiscal year, and any such updated factors included
in its periodic filings with the Securities and Exchange Commission
(the “SEC”), which are accessible on the SEC's website at
www.sec.gov. These factors should not be construed as exhaustive
and should be read in conjunction with the other cautionary
statements that are included in this press release (or BREIT’s
prospectus and other filings). Except as otherwise required by
federal securities laws, BREIT undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future developments or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20191015006088/en/
Blackstone Jennifer Friedman
Jennifer.Friedman@blackstone.com (212) 583-5122
MGM Resorts Brian Ahern media@mgmresorts.com
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