VICI Properties Inc. Completes Acquisition of Remaining 49.9% Interest in MGM Grand Las Vegas and Mandalay Bay Joint Venture

VICI Properties Inc. (NYSE: VICI) announced today that the Company has closed on the previously announced acquisition of the remaining 49.9% interest in the joint venture that owns MGM Grand Las Vegas and Mandalay Bay Resort from Blackstone Real Estate Income Trust, Inc. for cash consideration of approximately $1.27 billion and VICI’s assumption of BREIT’s pro-rata share of existing property-level debt. The cash consideration was funded through a combination of cash on hand and proceeds from the settlement of forward equity sale agreements. The property-level debt has a principal balance of $3.0 billion, 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 International (NYSE: MGM). The lease remains unchanged and will generate annual rent of approximately $310 million upon the commencement of the next rental escalation on March 1, 2023.

The MGM Grand Las Vegas / Mandalay Bay triple-net lease has a remaining initial lease term of approximately 27 years (expiring in 2050), with two ten-year tenant renewal options. Rent under the lease agreement escalates annually at 2.0% through 2035 (year 15 of the initial lease term) and thereafter at the greater of 2.0% or CPI (subject to a 3.0% ceiling).

Morgan Stanley & Co. LLC acted as exclusive financial advisor and Hogan Lovells served as legal advisor to VICI Properties.