(Reuters) -Realty Income signed an agreement with Blackstone’s real estate investing firm to invest about $950 million in the Bellagio Las Vegas resort, valuing the assets at $5.1 billion, the companies said on Friday.
Realty Income would acquire common and preferred equity interests from Blackstone Real Estate Income Trust (BREIT) in a new joint venture that owns a 95% interest in the real estate assets of Bellagio.
Blackstone had bought Bellagio from MGM Resorts for $4.25 billion in 2019.
According to the companies, Realty Income would invest about $300 million of common equity in the joint venture, subject to certain adjustments, to acquire a near-22% indirect interest in the property.
Realty Income would also invest $650 million to buy a yield-bearing preferred equity interest in the joint venture.
The transaction is expected to close in the fourth quarter of the year.
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The Wall Street Journal first reported the news on Friday.
(Reporting by Nathan Gomes in Bengaluru; Editing by Dhanya Ann Thoppil and Shilpi Majumdar)