Blackstone’s (BX) Blackstone Real Estate Partners VII L.P. (BREP) is selling The Cosmopolitan of Las Vegas to MGM Resorts International. The company has inked a $5.65 billion deal for the resort. The transaction is expected to close early next year, subject to regulatory approvals. BX shares fell 1.41% to close at $123.34 on Monday.
The Blackstone is an asset management company, which specializes in real estate. It owns commercial real estate globally.
In addition to acquiring the resort’s operations, MGM Resorts International has also inked a long-term lease agreement with a consortium led by Cherng Family Trust in partnership with Stonepeak Partners and Blackstone Real Estate Income Trust, Inc. The trio will acquire The Cosmopolitan’s real estate assets.
Additionally, Blackstone has secured 3,000 stable jobs for professionals who will continue to serve guests of the hotel. (See Blackstone stock charts on TipRanks)
“This transaction underscores Blackstone’s ability to acquire and transform large, complex assets,” said, Tyler Henritze, the Head of Acquisitions Americas at Blackstone Real Estate.
Recently UBS analyst Adam Beatty reiterated a Buy rating on the stock and increased the price target to $135 from $110, implying 9.5% upside potential.
Consensus among analysts is a Strong Buy based on 6 Buys and 2 Holds. The average Blackstone price target of $119.64 implies 3% downside potential to current levels.
Related News:
BMO Announces Winners of 19th 1st Art! Competition
RBC Reveals 3 Important Trends for Small Businesses
TD Bank Launches Annual ‘TD Thanks You’ Campaign
