Blackstone Real Estate Income Trust Completes Acquisition of Bellagio Real Estate from MGM Resorts International for $4.25 Bi...
November 18 2019 - 9:00AM
Business Wire
Blackstone Real Estate Income Trust (“BREIT”) and MGM Resorts
International (“MGM Resorts”) (NYSE:MGM) today announced the
closing of the previously announced 95%/5% BREIT-led joint venture
with MGM Resorts 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 has leased the property
from the joint venture and continues to manage, operate and be
responsible for all aspects of the property on a day-to-day
basis.
The transaction was announced on October 15, 2019.
Advisors
Weil, Gotshal & Manges LLP served as legal counsel to MGM
Resorts and PJT Partners 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. Simpson
Thacher & Bartlett LLP served as legal counsel to BREIT.
Morgan Stanley & Co, J.P. Morgan, and Citigroup Global
Markets Inc. served as BREIT’s financing advisors.
About Blackstone Real Estate
Blackstone is a global leader in real estate investing.
Blackstone’s real estate business was founded in 1991 and has $157
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. Our 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 that 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 30 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 or MGM Resorts’ 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
and MGM Resorts believe such factors include the continuation of
operations at the Bellagio under the new arrangement. BREIT and MGM
Resorts believe these factors also include but are not limited to
those described under the section entitled “Risk Factors” in their
respective prospectuses and annual reports for the most recent
fiscal year, and any such updated factors included in their
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 or MGM Resorts’
prospectuses and other filings). Except as otherwise required by
federal securities laws, neither BREIT nor MGM Resorts undertakes
an 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/20191118005459/en/
Blackstone Jennifer Friedman
Jennifer.Friedman@blackstone.com (212) 583-5122
MGM Resorts Brian Ahern media@mgmresorts.com
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