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MGM Properties & Blackstone to acquire real estate assets of the MGM Grand and Mandalay Bay

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Morgan Stanley & Co. LLC and Evercore served as financial advisors to MGM Growth Properties, and Hogan Lovells US LLP served as legal counsel.

Rockefeller Capital Management acted as financial advisor to the conflicts committee of the MGP Board of Directors, and Potter Anderson & Corroon LLP served as legal counsel. Citigroup Global Markets Inc. served as financial advisor to BREIT. Citigroup Global Markets Inc., Barclays Capital Real Estate Inc., Deutsche Bank AG, and Societe General served as BREIT’s financing advisors. Simpson Thacher & Bartlett LLP served as legal counsel to BREIT. Fried Frank acted as counsel to Morgan Stanley and Evercore

MGM Growth Properties LLC (NYSE: MGP) and Blackstone Real Estate Income Trust, Inc. entered into a definitive agreement to form a new joint venture to acquire the Las Vegas real estate assets of the MGM Grand and Mandalay Bay for $4.6 billion. In addition, BREIT will purchase $150 million in MGP Class A shares. MGP will own 50.1% of the joint venture, and BREIT will own 49.9%. This transaction is expected to close in the first quarter of 2020.

At closing, MGM Resorts International (NYSE: MGM) will enter into a long-term triple net master lease for both properties and provide a full corporate guarantee of rent payments. MGM Resorts 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.

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. MGM Resorts’ initial annual rent will be $292 million. MGP currently owns the Mandalay Bay real estate, and MGM Resorts currently owns the MGM Grand real estate.

MGP is one of the leading publicly traded real estate investment trusts engaged in the acquisition, ownership, and leasing of large-scale destination entertainment and leisure resorts, whose diverse amenities include casino gaming, hotel, convention, dining, entertainment, and retail offerings.

BREIT is a perpetual-life, institutional quality real estate investment platform that brings private real estate to income focused investors. 

The Fried Frank team was led by corporate partner Philip Richter and included corporate associate Roy Tannenbaum.

Source: GLC

(Note: The story has been published without modifications to the text. Only the headline and intro have been changed.)

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