CityCenter, home to the Aria casino and the Vdara hotel, will receive an $800m capital infusion following a newly announced agreement between Realty Income and Blackstone Real Estate.
The investment will take the form of preferred equity, allowing Realty Income to earn a steady return while Blackstone retains full ownership of the assets.
Realty Income, a publicly traded real estate investment trust known for its monthly dividend model, said the deal is expected to generate an initial return of 7.4%.
MGM Resorts International will continue to operate both properties under the existing triple-net lease, which requires MGM to cover operational expenses while rent increases annually.
Realty Income President and CEO Sumit Roy said: "This investment highlights the value of iconic Las Vegas properties. It provides attractive returns while supporting a world-class destination on the Strip."
The transaction marks the second major collaboration between Realty Income and Blackstone in Las Vegas. The two companies previously partnered on a joint venture involving the Bellagio in 2023.
Jacob Werner, Co-Head of Americas Acquisitions for Blackstone Real Estate, said: "We are pleased to reach this agreement and grow our partnership with Realty Income. This preferred equity investment is a terrific outcome for our investors as it returns significant capital while preserving our ownership in a world-class resort at the heart of the Las Vegas Strip."
The deal is expected to close on December 9.
The agreement comes as Nevada's gaming market continues to show strong performance. According to the Nevada Gaming Control Board's latest figures, statewide gaming revenue rose 5% in October to $1.35bn. The Las Vegas Strip generated $748.9m, an 8.2% year-on-year increase, while table game revenue climbed 23% to nearly $433.7m.
The Nevada Gaming Commission recently approved a $7.8m fine against Caesars Entertainment for anti-money-laundering violations following a 4-1 vote in November
