Blackstone Real Estate Income Trust, Inc. (BREIT) and VICI Properties Inc. (VICI Properties) have entered into an agreement in which VICI will acquire BREIT’s 49.9% interest in the joint venture that owns MGM Grand Las Vegas and Mandalay Bay Resort.
The purchase involves a cash consideration of approximately US$1.27 billion and VICI's assumption of BREIT's pro-rata share of the existing property-level debt, which has a principal balance of US$3 billion, matures in 2032, and bears interest at a fixed rate of 3.558% per annum through March 2030. The subject of the purchase is a property located on the southern part of the Las Vegas Strip in Las Vegas, Nevada, USA.
The deal is expected to close at the beginning of the Q1 of 2023. PJT Partners and Barclays are financial advisors to BREIT, while Simpson Thacher & Bartlett LLP are legal advisors. Morgan Stanley & Co. LLC acts as exclusive financial advisor to VICI Properties and Hogan Lovells as legal advisor.