Two of Las Vegas’ most well-known properties will receive new owners, as MGM Resorts International has announced plans to sell both the Bellagio and Circus Circus resorts in separate deals valued at about $5 billion.
Reuters reported that Blackstone Real Estate Income Trust will acquire the Bellagio for $4.25 billion through a 95-5 joint venture with MGM, leasing it back to a unit of the casino company for an initial annual rent of $245 million. In addition, Circus Circus Las Vegas will be sold to an affiliate of Treasure Island owner Phil Ruffin for $825 million.
The announcement comes nine months after MGM, which had a long-term debt of $15 billion as of December 2018, formed a committee to evaluate its real estate portfolio amid its move to an asset-light model.
The deals are expected to close in the fourth quarter of 2019.
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