Simpson Thacher is representing Blackstone Real Estate Income Trust (“BREIT”) in connection with its acquisition of the real estate assets of Mandalay Bay and MGM Grand for approximately $4.6 billion in a 50.1%/49.9% joint venture led by MGM Growth Properties (“MGP”). MGM Resorts International will lease the property back from the joint venture and continue to manage, operate and be responsible for all aspects of the property on a day-to-day basis. In addition, BREIT will purchase $150 million in MGP Class A shares.
This transaction follows BREIT’s $4.25 billion acquisition of the Bellagio real estate from MGM, which closed in November. The Firm also represented Blackstone in its acquisition of The Cosmopolitan of Las Vegas in 2014.
MGM Grand and Mandalay Bay comprise approximately 9,748 luxury rooms and 300,000 square feet of first class casino space across 226 acres on the Las Vegas Strip.
The Simpson Thacher team includes Erik Quarfordt, Greg Ressa, Jason Mohr, Aryeh Goldman, Sam Rudik, Carla Elliott and Margaret Finnegan (Real Estate); Nancy Mehlman, Sarah Katz and Edward Grais (Tax); Brian Stadler, Matthew Rogers, Andrew Kofsky and Daniel Levien (M&A); Edgar Lewandowski, Benjamin Wells and Eva Kang (Capital Markets); and Andrew Blau and Jeanne Annarumma (Executive Compensation and Employee Benefits).