In the initial transaction, MGM agreed to pay rent that steadily increases by 2 percent during the 30-year term of the lease and that remains unchanged. Analysts say the property’s value has increased to $5.1 billion and that Blackstone sold a piece of its investment to raise cash. The remaining 5 percent ownership will be retained by MGM Resorts International, which manages the 3,933-room Strip resort and affirmed in a Friday email that operations there would remain unchanged.īlackstone acquired the Bellagio land in 2019, then valued at $4.25 billion. When the transaction closes, Blackstone will retain 73.1 percent ownership of the property. Realty Income also will invest $650 million to acquire a yield-bearing preferred equity interest in the joint venture. Upon closing, expected to occur in this year’s fourth quarter, Realty Income will invest $300 million of common equity in the joint venture, subject to certain adjustments, to acquire a 21.9 percent indirect interest in the Bellagio resort-casino and the land it sits on, according to a release issued by both companies. Realty Income Corp., a San Diego real estate investment trust that is an S&P 500 company listed on the New York Stock Exchange, signed an agreement to invest $950 million to acquire common and preferred equity stock from New York-based Blackstone Real Estate Income Trust Inc. Visitors to Bellagio won’t see any changes in operations as a result of the formation of a new joint venture land ownership deal announced Friday.

Bellagio is seen on the Las Vegas Strip, Wednesday, June 7, 2023.

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