{"id":269956,"date":"2023-04-21T13:05:16","date_gmt":"2023-04-21T18:05:16","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=269956"},"modified":"2023-04-24T10:25:16","modified_gmt":"2023-04-24T15:25:16","slug":"breit-could-mull-bellagio-cosmopolitan-sales-says-hoya-capital","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/breit-could-mull-bellagio-cosmopolitan-sales-says-hoya-capital\/","title":{"rendered":"Blackstone Could Consider Bellagio, Cosmopolitan Sales, Says Real Estate Firm"},"content":{"rendered":"

If it needs to raise cash, Blackstone Real Estate Income Trust (BREIT) could consider selling the property assets of Bellagio and\/or Cosmopolitan on the Las Vegas Strip, according to a real estate research firm and asset manager.<\/p>\n

\"MGM\"
Cosmopolitan Las Vegas. BREIT could consider selling that property or Bellagio to raise cash, says a research firm. (Image: Las Vegas Sun<\/em>)<\/figcaption><\/figure>\n

In a new report on casino real estate investment trusts (REITs), Hoya Capital points out BREIT could consider asset sales to meet redemption requests, and Strip properties could be atop the list of candidates. It did so last December<\/a>, when it sold its 49.9% interests in Mandalay Bay and MGM Grand to VICI Properties (NYSE: VICI) for $4.27 billion.<\/p>\n

Seeking to raise capital to meet redemptions and keep the music playing, BREIT has quickly pivoted from buyer to seller \u2013 spawning its aforementioned deal with VICI at favorable terms for the Casino REIT — and we believe BREIT\u2019s interest in the Cosmopolitan and the Bellagio are among the most likely assets that BREIT sells next,\u201d<\/strong> noted Hoya Capital.<\/p><\/blockquote>\n

A report indicating Bellagio<\/a> could be a BREIT divestment target surfaced earlier this month. But the real estate firm has not publicly commented on whether or not it\u2019s mulling Las Vegas asset sales.<\/p>\n

Bellagio, Cosmopolitan Could Fetch Big Prices<\/h2>\n

BREIT acquired the real estate of Bellagio in 2019<\/a> for $4.25 billion. Last year, a group comprised of the Cherng Family Trust, Stonepeak Partners, and BREIT paid $4 billion<\/a> for Cosmopolitan\u2019s property assets. Both casino resorts are operated by MGM Resorts International (NYSE: MGM).<\/p>\n

\n

Hoya Capital pointed out that BREIT is unlikely to sell any of its holdings at a loss against the original purchase price. That furthers the notion that Bellagio and Cosmopolitan are the REIT\u2019s most likely properties to be sold if BREIT goes down that path.<\/p>\n<\/div>\n

Analysis conducted by Hoya indicates nine of BREIT\u2019s 14 deals are \u201ccurrently in the red based on public market comparable pricing.\u201d In other words, BREIT\u2019s pool of assets it can potentially sell at a profit is small.<\/p>\n

BREIT owns other properties in Las Vegas, including residential and industrial real estate.<\/p>\n

Potential Buyers for Bellagio, Cosmopolitan<\/h2>\n

Again, BREIT hasn\u2019t said it\u2019s looking to sell Bellagio or Cosmopolitan. But if it does, the potential pool of buyers, while enthusiastic, is likely to be small.<\/p>\n

\n

VICI Properties makes the most sense of the two publicly traded gaming REITs, because it\u2019s done business with BREIT and already counts MGM as one of its largest tenants. For its part, Gaming and Leisure Properties (NASDAQ: GLPI) previously mentioned a preference for regional casino real estate. Either REIT should be able to effectively access capital should it find compelling deals.<\/p>\n<\/div>\n

\u201cAccess to longer-term fixed-rate capital has proven to be a significant competitive advantage for public REITs, and these casinos REITs’ impressive track record in capital deployment and shareholder-friendly governance justifies our willingness to \u2018pay up\u2019 at moderately elevated multiples,\u201d concluded Hoya.<\/p>\n

Caesars Palace owner VICI is already the largest landlord on the Strip. But the REIT signaled a willingness<\/a> to expand its portfolio there, adding it\u2019d like to add downtown Las Vegas and locals casinos to its roster.<\/p>\n","protected":false},"excerpt":{"rendered":"

If it needs to raise cash, Blackstone Real Estate Income Trust (BREIT) could consider selling the property assets of Bellagio and\/or Cosmopolitan on the Las Vegas Strip, according to a real estate research firm and asset manager. In a new report on casino real estate investment trusts (REITs), Hoya Capital points out BREIT could consider […]<\/p>\n","protected":false},"author":46,"featured_media":224625,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,81886,32093,1],"tags":[81903,23,81966,81967],"acf":[],"yoast_head":"\nBREIT Could Mull Bellagio, Cosmopolitan Sales, Says Hoya Capital<\/title>\n<meta name=\"description\" content=\"Bellagio, Cosmopolitan Sales possible if BREIT needs cash, says Hoya Capital.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/breit-could-mull-bellagio-cosmopolitan-sales-says-hoya-capital\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BREIT Could Mull Bellagio, Cosmopolitan Sales, Says Hoya Capital\" \/>\n<meta property=\"og:description\" content=\"Bellagio, Cosmopolitan Sales possible if BREIT needs cash, says Hoya Capital.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/breit-could-mull-bellagio-cosmopolitan-sales-says-hoya-capital\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-04-21T18:05:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-24T15:25:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/cosmo.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/breit-could-mull-bellagio-cosmopolitan-sales-says-hoya-capital\/\",\"url\":\"https:\/\/www.casino.org\/news\/breit-could-mull-bellagio-cosmopolitan-sales-says-hoya-capital\/\",\"name\":\"BREIT Could Mull Bellagio, Cosmopolitan Sales, Says Hoya Capital\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/breit-could-mull-bellagio-cosmopolitan-sales-says-hoya-capital\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/breit-could-mull-bellagio-cosmopolitan-sales-says-hoya-capital\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/cosmo.jpg\",\"datePublished\":\"2023-04-21T18:05:16+00:00\",\"dateModified\":\"2023-04-24T15:25:16+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Bellagio, Cosmopolitan Sales possible if BREIT needs cash, says Hoya Capital.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/breit-could-mull-bellagio-cosmopolitan-sales-says-hoya-capital\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/breit-could-mull-bellagio-cosmopolitan-sales-says-hoya-capital\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/breit-could-mull-bellagio-cosmopolitan-sales-says-hoya-capital\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/cosmo.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/cosmo.jpg\",\"width\":1200,\"height\":800,\"caption\":\"Cosmopolitan Las Vegas. 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