Realty Income Corporation, the monthly dividend company and Blackstone Real Estate Income Trust announced today that Realty Income has signed a final agreement to invest about $950 million to acquire common and preferred shares from BREIT in a new joint venture that owns a 95% stake in The Bellagio Las Vegas property. Upon termination, Realty Income will invest approximately $300 million in common shares in the joint venture to acquire an indirect stake of 21.9% in the property, BREIT will maintain an indirect stake of 73.1% and MGM Resorts International will maintain a 5.0% stake in the property. Realty Income will also invest $650 million to acquire a high-yielding preferred stake in the joint venture.
Located in the heart of Las Vegas Strip, Las Vegas, Nevada, Bellagio operates and maintains under the existing triple net lease, which has a remaining term of approximately 26 years. AAA Five Diamond Resort features approximately 4,000 rooms and suites across two towers, 157,000 square feet of gaming space, and 200,000 square feet of state-of-the-art conference and event facilities. Located on a 77-acre campus, the resort also includes the iconic Bellagio Fountain and several Michelin-starred restaurants.
“Real Estate Income is looking to invest heavily in high-quality real estate in partnership with business leaders in the industry. The deal to acquire a stake in iconic property Bellagio represents our second investment in the gaming industry and represents the benefits of scale, scale and access to capital,” said Sumit Roy, president and CEO of Real Estate Income. “We are excited to launch our credit investment platform with a preferred equity investment in Bellagio joint ventures. Credit investment naturally adjoins traditional businesses and can leverage core capabilities in transaction sourcing and structuring, real estate and credit acquisition and monitoring while delivering added value to customers.” 경마사이트
Nadem Mezzi, director of Blackstone Real Estate America, said, “You invest the problem and this deal shows strong investor demand for high-quality assets that we have assembled within Bright. Bellagio is an iconic property at the heart of the Las Vegas Strip and looks forward to our continued ownership of this asset, which is currently partnered with Realty Income. This partial sale shows another surprising result for Bright’s shareholders.”