Las Vegas, NV (KXNT/PR Newswire) - MGM Resorts International has entered into a definitive agreement with Blackstone to acquire the operations of The Cosmopolitan of Las Vegas for cash consideration of $1.625 billion, subject to customary working capital adjustments.
Following the close of the transaction, MGM Resorts will enter into a 30-year lease agreement, with three 10-year renewal options, with a partnership among Stonepeak Partners, Cherng Family Trust and Blackstone Real Estate Income Trust, Inc., which will acquire The Cosmopolitan's real estate assets.
MGM Resorts will pay an initial annual rent of $200 million, escalating annually at 2% for the first 15 years and the greater of 2% or the CPI increase (capped at 3%) thereafter.
"We are proud to add The Cosmopolitan, a luxury resort and casino on the Las Vegas Strip, to our portfolio," said MGM Resorts CEO & President Bill Hornbuckle. "The Cosmopolitan brand is recognized around the world for its unique customer base and high-quality product and experiences, making it an ideal fit with our portfolio and furthering our vision to be the world's premier gaming entertainment company. We look forward to welcoming The Cosmopolitan's guests and employees to the MGM Resorts family."
The Cosmopolitan opened in December of 2010 and underwent significant capital improvements since Blackstone acquired the property in 2014.
The transaction is expected to close in the first half of 2022, subject to regulatory approvals.