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Blackstone noted that the agreement separates ownership of the real estate from its operations, which are being sold to MGM Resorts International for $1.625 billion. MGM will sign a long-term lease with investment firm Stonepeak Partners, Cherng Family Trust – a Las Vegas-based family office for the founders of the Panda Restaurant Group – and Blackstone Real Estate Income Trust. Black Stone’s real-estate investment trust will acquire the property for $4 billion.
“Stonepeak, in partnership with the Cherng Family Trust, believes this transaction represents a fantastic opportunity to invest in the underlying real estate of The Cosmopolitan of Las Vegas, a solid asset with an irreplaceable location, durable cash flows and the potential for additional upside,” said Phill Solomond, head of real estate at Stonepeak.
Blackstone said that it has secured roughly 3,000 stable jobs for employees that will continue to serve at the hotel. The deal is anticipated to close in early 2022, subject to regulatory approvals and other customary closing conditions.