(Bloomberg) – Blackstone Inc. again intends to sell the Cosmopolitan of Las Vegas resort, this time for a price of $ 5 billion or more, according to those familiar with the matter.
Apollo Global Management Inc., which has acquired gambling companies around the world, is considering an offer, some of the people said. Another potential partner as a property manager is MGM Resorts International, said one of the people. Blackstone, Apollo and MGM spokesmen declined to comment.
Blackstone, the New York-based investment firm, tried to find a buyer for $ 4 billion or more two years ago. Las Vegas casino prices have continued to rise despite the pandemic as real estate investment trusts buy real estate and share the cost with management companies.
Casino companies have taken down real estate and often keep managing the real estate. Apollo to buy the Venetian resort complex in Las Vegas for $ 6.25 billion in a partnership with Vici Properties Inc., a REIT.
MGM has sold and continued to manage casino properties at the same time. In July it was agreed to sell two Las Vegas hotels in the CityCenter for $ 3.89 billion to Blackstone. The Cosmopolitan is located between CityCenter and Blackstone’s Bellagio Casino.
Opened in 2010, Cosmopolitan ran into financial difficulties during construction amid the Great Recession. Owner Deutsche Bank AG, who built the property for $ 3.9 billion, sold it to Blackstone in 2014 for $ 1.73 billion.
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