Blackstone Sells Realty Income a Stake in the Bellagio for $950M

Realty Income is acquiring a 21.9% stake in the Bellagio, the iconic Las Vegas hotel and resort, from Blackstone Real Estate Income Trust, paying about $950 million in common and preferred equity for its position. BREIT will retain a 73.1% indirect interest, and MGM Resorts International, which operates the casino and hotel, will retain a 5% interest.

Specifically, Realty Income is investing $300 million of common equity in a new joint venture that owns a 95% interest in the Bellagio’s real estate assets. The REIT will also invest $650 million to acquire a yield-bearing preferred equity interest in the joint venture. Realty Income’s common equity ownership interest will be subordinate to its $650 million preferred equity investment in the venture.