Blackstone To Sell The Cosmopolitan Of Las Vegas For $5.65 Billion
September 27, 2021 | Will Yakowicz
MGM Resorts International will acquire the operations of The Cosmopolitan, the luxury casino and hotel on the Las Vegas Strip, for $1.625 billion from private equity giant Blackstone. Both MGM and Blackstone announced the deal on Monday.
The private equity firm’s Blackstone Real Estate Partners VII LP is selling the hotel and casino’s real estate assets to the Cherng Family Trust, which was started by billionaires Andrew and Peggy Cherng of fast-food chain Panda Express, alternative real estate investment firm Stonepeak Partners and Blackstone Real Estate Income Trust, Inc. for more than $4 billion.
Once the deal closes, MGM will enter into a 30-year lease agreement with three 10-year renewal options. The casino operator will pay $200 million in annual rent, which will increase annually 2% for the first 15 years.
