Blackstone places safer bet in Las Vegas
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Blackstone bought the Cosmopolitan casino seven years ago. It is selling it to MGM Resorts. The deal is a good one for the investors. It's a 5% capitalisation rate, but it's lower than other recent Las Vegas transactions. Blackstone will collect rent regardless of MGM's ups and downs. There will be half as many people visiting Las Las Nevada in 2020 as in 2019. Public market valuations have soared. This is why Blackston got lucky with the timing. it is buying the real estate assets while MGM takes the casino operations.
MGM Resorts International will buy the Cosmopolitan casino for $5.65 billion. Stonepeak Partners, Cherng Family Trust and Blackstone Real Estate Income Trust will acquire the property assets for roughly $4 billion as part of the agreement.
