Blackstone Real Estate Income Trust (BREIT) has agreed to divest its 49.9% interest in MGM Grand Las Vegas and Mandalay Bay Resort to its joint venture (JV) partner VICI Properties for approximately $1.27 billion in cash.

VICI Properties currently holds a 50.1% stake in the joint venture that owns the two properties located in Las Vegas.

The real estate investment trust will also assume the pro-rata share of Blackstone Real Estate Income Trust of the $3 billion existing property-level debt, as part of the agreement.

The sale is expected to help the real estate investment platform to further focus on its portfolio of logistics and rental housing.

Scott Trebilco — Blackstone Real Estate Senior Managing Director said: “The sale of these assets is an excellent outcome for our BREIT investors and enables us to further concentrate BREIT’s portfolio in its highest growth sectors, including logistics and rental housing.”

Located on 226 acres on the Las Vegas Strip, the MGM Grand Las Vegas and Mandalay Bay resorts span over 18 million building square feet and consist of around 11,000 guestrooms and suites, including Four Seasons and Delano hotels.

The two Las Vegas properties with around 321,000 square feet of gaming space, feature 191 table games and 2,235 slot machines and electronic table games.

Edward Pitoniak — VICI Properties CEO said: “We’re excited to further our investment in MGM Grand Las Vegas and Mandalay Bay, two of the largest and highest-quality resorts in what we believe is the leisure and convention destination with the most compelling future demand outlook.

“This transaction also provides us with the opportunity to further grow our partnership with MGM Resorts International as they look to capitalize on the growing vitality of the South Strip.”

The two Las Vegas resorts also feature exhibition and meeting facilities spread over approximately 3 million gross square feet.

Other amenities include many Michelin Star-winning restaurants, the MGM Grand Garden Arena, The Mansion at MGM Grand, Hakkasan Night Club, Topgolf as well as spas and pools.

Subject to customary closing conditions, the deal is anticipated to be completed early in Q1 2023.

  Blackstone Real Estate Income Trust, Edward Pitoniak, Las Vegas, Mandalay Bay Resort, MGM Grand Las Vegas, Nevada, Scott Trebilco, USA, VICI Properties