Real estate trust reaches deal for $950M stake in Bellagio on Las Vegas Strip

LAS VEGAS (KSNV) — A real estate trust has agreed to purchase a $950 million stake in the Bellagio casino-hotel.

Realty Income announced it will form a new joint venture with Blackstone Real Estate Income Trust, which owns the land for the Las Vegas Strip resort.

Under the agreement, Realty Income will put $300 million toward common equity in the joint venture to buy nearly 22% of indirect interest in the Bellagio. Another $650 million will go toward a yield-bearing preferred equity interest.

Blackstone will keep a 73% stake and MGM Resorts, which remains in charge of the Bellagio's operations, keeps a 5% interest.

"This transaction to acquire an interest in the Bellagio, an iconic property, represents our second investment in the gaming industry and exemplifies the advantages of our size, scale and access to capital," Sumit Roy, Realty Income's president and CEO, said in a statement.

The deal is expected to close by the end of this year.