Realty Income Invests $950M In Bellagio Las VegasDeal Comes At A $5.1 Billion Valuation |
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One of the Las Vegas Strip’s most iconic casinos has a new investor.
Realty Income Corporation, The Monthly Dividend Company, and Blackstone Real Estate Income Trust jointly announced Aug. 25 that Realty Income has signed a definitive agreement to invest approximately $950 million to acquire common and preferred equity interests from BREIT in a new joint venture that owns a 95% interest in the real estate assets of The Bellagio Las Vegas.
Upon closing, Realty Income will invest approximately $300 million of common equity in the joint venture, subject to certain adjustments, to acquire a 21.9% indirect interest in the property, BREIT will retain a 73.1% indirect interest, and MGM Resorts International will retain a 5.0% interest in the property.
Realty Income will also invest $650 million to acquire a yield-bearing preferred equity interest in the joint venture.
The Bellagio is subject to an existing triple net lease with approximately 26 years of remaining term and is operated and maintained by MGM.
The resort features approximately 4,000 guestrooms and suites across two towers, 157,000 square feet of gaming space and 200,000 gross square feet of state-of-the-art meeting and event facilities. Located on a 77-acre site, the resort also includes the Fountains of Bellagio and multiple Michelin Star restaurants.
“Realty Income seeks to invest in high-quality real estate at scale in partnership with operators who are leaders in their respective industries. This transaction to acquire an interest in the Bellagio, an iconic property, represents our second investment in the gaming industry and exemplifies the advantages of our size, scale and access to capital,” said Sumit Roy, Realty Income’s President and Chief Executive Officer.
“Where you invest matters, and this transaction demonstrates the strong investor demand for the high-quality assets we have assembled within BREIT,” said Nadeem Meghji, Head of Blackstone Real Estate Americas.
“The Bellagio is an iconic property in the heart of the Las Vegas Strip, and we look forward to our continued ownership of this asset, now in partnership with Realty Income. This partial sale represents another terrific outcome for BREIT shareholders.”
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