Casino property giant VICI Properties has completed its buyout of the MGM Grand and Mandalay Bay properties on the Las Vegas Strip, closing the acquisition of its remaining 49.9 percent stake in the two venues from financial behemoth Blackstone.
The agreement, announced in December, called for ‘approximately $1.27 billion’ in cash and VICI properties assuming $3 billion of their existing debt, which matures in 2023.
The deal had been expected to be finalized within the first quarter of 2023, with MGM Resorts International to continue to lease the properties from VICI, with annual rent in 2023 to amount to ‘approximately $310 million.
Under the new deal, VICI will now have 100 percent ownership of 321,000 square feet of gaming space, with 191 table games and 2,235 slot machines and electronic table games, 11,000 guest rooms and suites, as well as 3 million gross square feet of exhibition and meeting facilities, spread across 226 acres on the Las Vegas Strip.
The move is just the latest by VICI to cement its reputation as a casino landlord, having previously completed a $17.2 billion buyout of MGM Growth Properties (including about $4.4 billion in cash).
The real estate giant, however, does not step in to operate properties, merely collecting rent from those that manage the newly acquired real estate.
VICI now manages a portfolio including Caesars Palace Las Vegas, MGM Grand and the Venetian Las Vegas ‘three of the most iconic entertainment facilities on the Las Vegas Strip’.
Las Vegas Sands had sold its Venetian, Palazzo and Sands Expo and Convention Center to VICI and investment group Apollo Global Management for $6.25 billion in March of 2021.