MGM Growth Properties and Blackstone REIT Form JV for Las Vegas Acquisitions
January 14, 2020 | James Sprow | Blue Vault
MGM Growth Properties LLC and Blackstone Real Estate Income Trust Inc. agreed to form a joint venture for the acquisition of the real estate assets of the MGM Grand and Mandalay Bay in Las Vegas for $4.6 billion.
Blackstone Real Estate also agreed to acquire $150 million in MGM Growth’s class A shares. MGM Growth will own 50.1% of the venture, while Blackstone Real Estate will own 49.9%.
The properties comprise 9,743 rooms, about three million square feet of meeting space and about 300,000 square feet of casino space. MGM Resorts International will enter into a long-term lease for both properties upon closing of the acquisition, which is expected to occur in the first quarter, subject to certain customary closing conditions.
Blackstone REIT is a continuously-offered nontraded REIT. Thru November 30, 2019, the REIT’s Class T shareholders had an estimated 10.78% total return in 2019. The net distribution yield for Class T shares was approximately 4.83% annualized as of Q4 2019. Blue Vault estimates that the REIT raised approximately $8.66 billion in equity in 2019.
Source: S&P Global Market Intelligence, Blue Vault
