Another One Bites the Dust
LAS VEGAS, NV: Another two casinos just exchanged hands on the Las Vegas Strip; the MGM Grand and the Mandalay Bay. The acquirer of the properties was Blackstone Realestate in a $4.6 billion lease-back deal.
The two companies have formed a joint agreement with a subsidiary of MGM Resorts (NYSE: MGM), MGM Growth Properties (NYSE: MGP). Blackstone and MGP will jointly own the MGM Grand and Mandalay Bay Resort in Las Vegas. This joint agreement will cost Blackstone an investment of $4.6 billion plus $150 million shares of MGP Class A stock. MGP will own 50.1% will Blackstone Real Estate will maintain 49.9% ownership.
Blackstone acquired The Cosmopolitan of Las Vegas in 2014 from Deutsch and bought the Bellagio from MGM Resorts (NYSE: MGM) last summer in 2019.