Realty Income announces $950M investment in The Bellagio Las Vegas

Realty Income (O) and Blackstone (BX) Real Estate Income Trust, jointly announced today that Realty Income has signed a definitive agreement to invest approximately $950M to acquire common and preferred equity interests from BREIT in a new joint venture that owns a 95% interest in the real estate assets of The Bellagio Las Vegas. Upon closing, Realty Income will invest approximately $300M of common equity in the joint venture, subject to certain adjustments, to acquire a 21.9% indirect interest in the property, BREIT will retain a 73.1% indirect interest, and MGM Resorts International (MGM) will retain a 5.0% interest in the property. Realty Income will also invest $650M to acquire a yield-bearing preferred equity interest in the joint venture. The Bellagio, situated at the center of the Las Vegas Strip in Las Vegas, Nevada, is subject to an existing triple net lease with approximately 26 years of remaining term and is operated and maintained by MGM. The AAA Five Diamond Resort features approximately 4,000 guestrooms and suites across two towers, 157,000 square feet of gaming space and 200,000 gross square feet of state-of-the-art meeting and event facilities. Located on a 77-acre campus, the resort also includes the iconic Fountains of Bellagio and multiple Michelin Star restaurants. The transaction is expected to close in the fourth quarter of 2023 and is subject to customary closing conditions.