US private equity giant The Blackstone Group is reportedly looking to sell half its stake in Las Vegas Strip resort Bellagio just four years after purchasing the property from MGM Resorts for US$4.25 billion.
According to Bloomberg, no final decision has been made on whether any such transaction will proceed, however Blackstone is said to be fielding offers as it looks to “cash out” on some of its real estate holdings. The company earlier this week announced that it plans to sell off certain warehouses and industrial properties for US$3.1 billion.
Blackstone purchased Bellagio in November 2019 in a deal that saw it form a new joint venture company – of which MGM holds 5% – and lease the property back to MGM for initial rent of US$245 million per annum.
The company also bought the entire equity interest in Australia’s Crown Resorts last year in a AU$8.9 billion (US$6.5 billion) deal, with Blackstone President Jon Gray recently revealing it plans to invest “significant capital” into revamping Crown’s long-time flagship, Crown Melbourne.
Blackstone has, however, also offloaded some of its casino assets, selling the Cosmopolitan in Las Vegas in 2021 and half its stake in MGM Grand and Mandalay Bay last December.
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