VICI Properties Inc., MGM Growth Properties LLC (MGP) and MGM Resorts International, MGP’s controlling shareholder, have entered into a definitive agreement under which VICI will acquire MGP for total consideration of $17.2 billion, including the assumption of approximately $5.7 billion of debt.
Upon completion of the merger, VICI will have an estimated enterprise value of $45 billion, reportedly solidifying its position as the largest experiential net lease REIT.
Simultaneous with the closing of the transaction, VICI will enter into an amended and restated triple-net master lease with MGM Resorts. Additionally, VICI will retain MGP’s existing 50.1% ownership stake in the joint venture with Blackstone Real Estate Income Trust, which owns the real estate assets of MGM Grand Las Vegas and Mandalay Bay.
“Through this transformative strategic acquisition, we are merging MGP’s best-in-class portfolio into VICI’s best-in-class management and governance platform, creating the premier gaming, entertainment and leisure REIT in America,” said VICI CEO Ed Pitoniak.
At MGP, CEO James Stewart said, “After many years of growing both of our portfolios, combining them into one company will generate the best results for the shareholders of both companies.”
VICI has secured a $9.3-billion financing commitment from Morgan Stanley–which is acting as its lead strategic and financial advisor on the transaction—J.P. Morgan and Citibank.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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