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Today it was announced that the Mandalay Bay and MGM Grand properties in Las Vegas are being sold to a private equity group for a staggering $4.6 billion.
The properties are being sold to Blackstone Group, who is working with MGM Growth Properties to take over the properties at the southern end of the Vegas Strip. The equity group will lease the properties back to MGM Resorts, so users won't see any change in how things are currently run. Both resorts have more than 9,700 hotel rooms as well as 300,000 square feet of casino space.
Rent for the properties will start at $292 million per year, and will likely scale up from there depending on different factors.
This isn't the first purchase by Blackstone from MGM. Last year the group bought the Bellagio for $4.25 billion.
Speaking about the deal Blackstone president Jon Gray said, "This transaction reflects our continuing strong conviction in Las Vegas."