October 15, 2019
Weil is advising MGM Resorts International in its definitive agreement to form a joint venture with Blackstone Real Estate Income Trust (“BREIT”) that values the real estate of Bellagio at $4.25 billion, which represents a purchase price multiple of 17.3x rent. In the landmark transaction for the gaming and entertainment industry, the joint venture will acquire Bellagio real estate and lease it back to a subsidiary of MGM Resorts for an initial annual rent of $245 million. MGM Resorts will receive a 5% equity interest in the joint venture and cash of approximately $4.2 billion. The transaction is expected to close in the fourth quarter of 2019, subject to certain closing conditions.
The Weil team advising MGM Resorts is led by Mergers & Acquisitions partner Michael Aiello and includes Mergers & Acquisitions partner Sachin Kohli and Mergers & Acquisitions associate Aileen Kim. The team also includes Real Estate partners Michael Bond, Nellie Camerik and David Herman; Co-Chair of Tax Joe Pari and Tax partner Mark Schwed; Executive Compensation & Benefits partner Paul Wessel; Technology & IP transactions partner Charan Sandhu; Employment Litigation partner Gary Friedman; Real Estate associates Yelena Nersesyan, Jannelle Seales, Sam Limmer, Cynthia Resnick, Joseph Sadon and Daniel Soso; Tax associates Adam Arikat and Mor Agam; Technology & IP transactions associates Catherine Kim and Maryann Thompson (Not Yet Admitted in New York); and Employment Litigation associate Thomas McCarthy.