Blackstone sells Bellagio stake to Realty Income Corp. in post-COVID rebound

Realty Income Corp. (O) said Friday it will invest $950 million as part of its acquisition of a 22% stake in the Bellagio Las Vegas from Blackstone Inc.'s (BX) Blackstone Real Estate Income Trust Inc. unit (BREIT). Realty Income agreed to invest about $300 million of common equity to acquire a 22% indirect interest in the property. BREIT will continue to hold a 73.1% indirect interest, and MGM Resorts International (MGM) will keep a 5% interest in the property. Realty Income will also invest $650 million to acquire a yield-bearing preferred equity interest in the joint venture with BREIT to own the property. The latest deal values the Bellagio at $5.1 billion, up from $4.25 billion when it bought the property in 2019 from MGM Resorts International (MGM) in a sale-leaseback deal, according to a Wall Street Journal report. The deal marks a recovery and rebound in the travel business and Las Vegas as a destination in the past three years. Blackstone stock is up 33.5% in 2023, compared to a 14% increase by the S&P 500 .

-Steve Gelsi

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08-25-23 0810ET

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