Blackstone Group in "advanced talks" to buy Bellagio and MGM Grand
The Blackstone Group is in "advanced talks" to buy and lease back the Bellagio and MGM Grand Las Vegas hotels and casinos from MGM Resorts International (NYSE: MGM), per Bloomberg. No financial terms were disclosed, but an earlier Bloomberg report valued the combined properties at around $7 billion.
Why it matters: This would be Blackstone's largest bet on the Vegas strip, where it has a mixed history.
- The firm paid around $1.7 billion for the Cosmopolitan hotel and casino in 2014, and reportedly considered shopping it earlier this year with a $4 billion asking price.
- But it also was part of disastrous pre-crisis deal for Harrah's, which later became known as Caesars Entertainment.
Lotta chips: Blackstone recently closed the largest real-estate private equity fund of all time, with $20.5 billion in commitments.
The bottom line: "Property sales free up cash for casino companies to expand while letting them continue to manage their resorts," per Bloomberg.