MGM Resorts has agreed to sell two of its most prominent Vegas properties the Bellagio and Circus Circus in separate deals.
It will pocket about $5 billion and both transactions are expected to close later this year.
The Bellagio sale will see MGM and new owner Blackstone Real Estate Income Trust enter a joint venture partnership.
Blackstone will own the property and MGM will continue to operate the Bellagio on a lease back arrangement at an initial annual rent of $245 million.
The Bellagio has nearly 4,000 rooms, 100,000 square feet of gaming and more than 200,000 square feet of meeting and event space.
"As big believers in MGM Resorts and Las Vegas, we are thrilled to partner with MGM to acquire the Bellagio on behalf of our BREIT investors," said Jon Gray, president of Blackstone Group.
Circus Circus is being sold outright to Treasure Island owner Phil Ruffin.
The transactions continue the company’s asset-light transformation.
"These transactions enhance the company’s strategic and operational flexibility and reinforce its commitment to targeted new growth opportunities," said MGM CEO Jim Mullen.
MGM still has other real estate assets, such as the MGM Grand in Las Vegas and MGM Springfield, Massachusetts, and could divest ownership of these in the future for the right price.
