Black stone will sell a 22 percent stake in Bellagio A hotel in Las Vegas, in a deal that’s worth nearly $1 billion more than it was when Blackstone bought it in 2019.
Real Estate Investment Trust (REIT) real estate income Agreed to buy the share owned by Blackstone They have reportedly been shopping for several monthsfor $300 million, the Wall Street Journal first reported. As part of the deal, Realty Income will also drop $650 million in preferred equity in the new joint venture with Blackstone, according to both companies.
Las Vegas has recovered since the pandemic devastated the tourism industry, with visitor volumes and spending soaring in 2022, and two new professional sports teams preparing to make Sin City their home. Wall Street Journal mentioned. The value of Bellagio shows the strength of the Las Vegas rebound.
Blackstone – through its real estate investment fund Blackstone Real Estate Income Fund (wide) – It spent $4.25 billion to buy the Bellagio from MGM Resorts In 2019, its most recent deal with Realty Income valued the 4,000-room hotel at $5.1 billion.
“Where you invest matters, and this deal demonstrates the strong investor demand for the high-quality assets we have assembled within Brit.” Nadim Magjihead to Blackstone Properties in the Americassaid in a statement.
Blackstone has bet big on Las Vegas, having nearly $20 billion of Las Vegas real estate in its portfolio as of March, and its gamble has paid off in recent years. in 2021, Real estate giant sold out Cosmopolitan Las Vegas to a group of investors, including MGM, for $5.65 billion, seven years after it bought the hotel and casino for $1.8 billion.
And at the end of 2022, It agreed to sell its 49.9 percent stake In the Mgm grand las vegas And Mandalay Bay hotels to Vichy properties At a valuation of $5.5 billion, which is said to have generated over $700 million in profit for Blackstone.
But not all of Blackstone’s bets in Las Vegas were successful. In March, a $325 million commercial mortgage-backed securities loan was granted to Blackstone Hughes Center office campus Hit a special service After Blackstone submitted a hardship letter stating that it could not fund future monthly payments.
Its Bellagio deal with Realty Income — which owns 13,100 properties primarily through net lease agreements — is scheduled to close in the fourth quarter.
Nicholas Rizzi can be reached at nrizzi@commercialobserver.com.
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