Realty Income Corp., a San Diego-based real estate investment trust, announced Friday it will invest $950 million in the real estate assets of The Bellagio Las Vegas.
The investment consists of $300 million of common equity and $650 million of yield-bearing preferred equity in a new joint venture with Blackstone Real Estate Income Trust that will own 95% of the Bellagio assets.
The resort property is subject to an existing triple-net lease with approximately 26 years of remaining term and is operated and maintained by MGM.
“Realty Income seeks to invest in high-quality real estate at scale in partnership with operators who are leaders in their respective industries,” said Sumit Roy, Realty Income’s president and chief executive officer.
“This transaction to acquire an interest in the Bellagio, an iconic property, represents our second investment in the gaming industry and exemplifies the advantages of our size, scale and access to capital,” he said.
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.
Realty Income owns 13,100 real estate properties that are under long-term net lease agreements with commercial clients.