By Michael Dabaie

 

Blackstone Inc. said Monday that Blackstone Real Estate Partners VII L.P. agreed to sell The Cosmopolitan of Las Vegas for $5.65 billion.

The Wall Street Journal had earlier reported that Blackstone agreed to the sale.

Blackstone said it considered a broad range of potential options for The Cosmopolitan and determined that separating the asset's operations from the underlying real estate would result in an optimal outcome.

Under the agreement, MGM Resorts International plans to acquire the operations of The Cosmopolitan and sign a long-term net lease with a partnership between Cherng Family Trust, Stonepeak Partners and Blackstone Real Estate Income Trust Inc., which will acquire The Cosmopolitan's real estate assets, Blackstone said in a release.

The transaction is expected to close in early 2022, the company said.

Blackstone said it acquired The Cosmopolitan in 2014. Blackstone said it implemented significant operational changes and invested more than $500 million into the property.

 

Write to Michael Dabaie at michael.dabaie@wsj.com

 

(END) Dow Jones Newswires

September 27, 2021 08:50 ET (12:50 GMT)

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