VICI Properties Inc. Completes Acquisition of Remaining 49.9% Interest in MGM Grand Las Vegas and Mandalay Bay Joint Venture
09 Gennaio 2023 - 2:30PM
Business Wire
VICI Properties Inc. (NYSE: VICI) (“VICI Properties” or the
“Company”), an experiential real estate investment trust, 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. (“BREIT”) 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.
About VICI Properties
VICI Properties Inc. is an S&P 500® experiential real estate
investment trust that owns one of the largest portfolios of
market-leading gaming, hospitality and entertainment destinations,
including Caesars Palace Las Vegas, MGM Grand and the Venetian
Resort Las Vegas, three of the most iconic entertainment facilities
on the Las Vegas Strip. VICI Properties’ geographically diverse
portfolio consists of 49 gaming facilities across the United States
and Canada comprising approximately 124 million square feet and
features approximately 59,300 hotel rooms and more than 450
restaurants, bars, nightclubs and sportsbooks. Its properties are
leased to industry leading gaming and hospitality operators,
including Caesars Entertainment, Inc., Century Casinos, Inc., the
Eastern Band of Cherokee Indians, Foundation Gaming &
Entertainment, LLC, Hard Rock International Inc., JACK
Entertainment LLC, MGM Resorts International, Penn Entertainment,
Inc., PURE Canadian Gaming Corp., and The Venetian Las Vegas. VICI
Properties has a growing array of investing and financing
partnerships with leading non-gaming experiential operators,
including Great Wolf Resorts, Cabot, Canyon Ranch and Chelsea
Piers. VICI Properties also owns four championship golf courses and
34 acres of undeveloped and underdeveloped land adjacent to the Las
Vegas Strip. VICI Properties’ strategy is to create the highest
quality and most productive experiential real estate portfolio. For
additional information, please visit www.viciproperties.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. You can identify these
statements by our use of the words “assumes,” “believes,”
“estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,”
“will,” and similar expressions that do not relate to historical
matters. All statements other than statements of historical fact
are forward-looking statements. You should exercise caution in
interpreting and relying on forward-looking statements because they
involve known and unknown risks, uncertainties, and other factors
which are, in some cases, beyond VICI’s control and could
materially affect actual results, performance, or achievements.
Important risk factors that may affect VICI’s business, results of
operations and financial position (including those stemming from
changes in economic conditions and risks relating to VICI’s pending
and recently completed transactions) are detailed from time to time
in VICI’s filings with the Securities and Exchange Commission. VICI
does not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise, except as may be required by
applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20230109005298/en/
Investors: Investors@viciproperties.com (646)
949-4631
Or
David Kieske EVP, Chief Financial Officer
DKieske@viciproperties.com
Danny Valoy Vice President, Acquisitions and Finance
DValoy@viciproperties.com
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