Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, and Blackstone Real Estate Income Trust, Inc. (BREIT) have announced that Realty Income has signed a definitive agreement to invest approximately US$950 million to acquire common and preferred equity interests from BREIT in a new joint venture that owns a 95% interest in the real estate assets of The Bellagio Las Vegas. Upon closing, Realty Income will invest approximately US$300 million of common equity in the joint venture, subject to certain adjustments, to acquire a 21.9% indirect interest in the property, BREIT will retain a 73.1% indirect interest, and MGM Resorts International (MGM) will retain a 5.0% interest in the property. Realty Income will also invest US$650 million to acquire a yield-bearing preferred equity interest in the joint venture. The transaction is expected to close in the fourth quarter of 2023 and is subject to customary closing conditions.

Latham & Watkins LLP represents Realty Income in the transaction with a deal team led by San Diego partner Ann Buckingham, with associate Ryan Kazemaini, on the joint venture aspects of the transaction, and by Century City/New York partner Meghan Cocci, with associate Kim Legate-Ford, on the real estate aspects of the transaction. Advice was also provided on tax matters by Century City partner Ana O’Brien and counsel Will Kessler, and on general corporate matters by Orange County partners Darren Guttenberg and William Cernius.