LAS VEGAS and NEW YORK — On Feb. 14, MGM Resorts International, MGM Growth Properties (MGP), and Blackstone Real Estate Income Trust (BREIT) announced the closing of the previously announced transaction for a joint venture formed between MGP and BREIT to acquire the Las Vegas real estate assets of the MGM Grand and Mandalay Bay for $4.6 billion. In addition, BREIT has purchased approximately 4.9 million MGP Class A shares at a price of $30.67 per share.
In connection with the completion of the transaction, MGM Resorts has entered into a long-term, triple-net master lease for both properties, and will continue to manage, operate, and be responsible for all aspects of the properties on a day-to-day basis, with the joint venture owning the properties and receiving rent payments. MGM has also provided a full corporate guarantee of rent payments.
Together, the MGM Grand and Mandalay Bay comprise 9,743 rooms, approximately three million square feet of meeting space, and approximately 300,000 square feet of casino space across 226 acres on the Las Vegas Strip.
The transaction was announced a month earlier on January 14, 2020.