VICI Properties to buy 49.9% interest in MGM joint venture from BREIT for $1.27B

Blackstone Real Estate Income Trust, or BREIT, and VICI Properties (VICI) announced jointly that they have entered into a definitive agreement in which VICI, currently owner of a 50.1% interest in the joint venture that owns MGM Grand Las Vegas and Mandalay Bay Resort, will acquire BREIT’s 49.9% interest in the joint venture for cash consideration of approximately $1.27B and VICI’s assumption of BREIT’s pro-rata share of the existing property-level debt. The property-level debt has a principal balance of $3B, matures in 2032, and bears interest at a fixed rate of 3.558% per annum through March 2030. The properties, situated at the south end of the Las Vegas Strip in Las Vegas, Nevada, are subject to an existing triple-net lease agreement between the joint venture and MGM Resorts (MGM). The lease will generate annual rent of approximately $310less than upon the commencement of the next rental escalation on March 1, 2023.