Your World of Legal Intelligence
 United Kingdom | +44 (0) 20 7284 8080

Vici Properties Closes USD 17.2bn Acquisition of MGM Growth Properties.

Document Cited in Related
Vincent

MANews-(C)2009-2022

US-based real estate investment trust Vici Properties Inc. (NYSE: VICI) has closed on the acquisition of MGM Growth Properties LLC (NYSE: MGP), the company said.

Upon completion of the merger, VICI will have an estimated enterprise value of approximately USD 44bn, firmly solidifying Vici's position as the largest experiential net lease REIT while also advancing Vici's strategic goals of portfolio enhancement and diversification.

Simultaneous with the closing of the MGP acquisition, the company entered into an amended and resaid triple-net master lease with MGM Resorts International (NYSE: MGM).

The MGM master lease has an initial term of 25 years, with three 10-year tenant renewal options and an initial total annual rent of USD 860m.

Rent under the MGM master lease escalates at a rate of 2.0% per annum for the first 10 years and thereafter at the greater of 2.0% per annum or the annual increase in the consumer price index, subject to a 3.0% cap.

Additionally, the company retained MGP's 50.1% ownership stake in the joint venture between MGP and Blackstone Real Estate Income Trust, Inc, which owns the real estate assets of MGM Grand Las Vegas and Mandalay Bay.

The BREIT JV lease remained unchanged and provides for current annual base rent of approximately USD 303.8m, of which approximately USD 152.2m is attributable to our investment in the BREIT JV, and an initial term of 30 years, with two 10-year tenant renewal options.

Rent under the BREIT JV lease escalates at a rate of 2.0% per annum for the first 15 years and thereafter at the greater of 2.0% per annum or the annual increase in CPI, subject to a 3.0% cap.

On a combined basis, the MGM master lease and BREIT JV lease will deliver initial attributable annual rent to us of approximately USD 1,012.2m. The tenant's obligations under the MGM master lease and BREIT JV lease continue to be guaranteed by MGM.

Following the MGP acquisition, the company has approximately 963.0 m shares of common stock outstanding...

To continue reading

Request your trial
COPYRIGHT Normans Media Ltd.

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT