VICI Properties Inc., an experiential real estate investment trust, has closed on the previously announced acquisition of MGM Growth Properties LLC (MGP). Upon completion of the merger, VICI will have an estimated enterprise value of approximately $44 billion, 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, VICI entered into an amended and restated 25-year, triple-net master lease with MGM Resorts International. The master lease has three 10-year tenant renewal options and an initial total annual rent of $860 million.
“The addition of the MGP portfolio, together with the recent closing of our Venetian acquisition, elevates VICI to the top ranks of American 4-wall REITs, making VICI a Top-5 REIT by EBITDA and a Top-10 REIT by enterprise value,” said Edward Pitoniak, VICI CEO. “We also become the largest owner of hotel and conference real estate in America, within what we believe is the superior transparency and integrity of the Triple Net Lease model. Moreover, among Top 10 American 4-wall REITs, VICI stands out for the Class A quality of our real estate. The VICI team has accomplished a total of $21 billion in closings in the last two months with the lowest G&A cost structure of any of the Top 10 REITS by enterprise value. The productivity of the VICI Team is unmatched.”
Morgan Stanley & Co. LLC served as lead strategic and financial advisor to VICI Properties on the transaction. Citigroup Global Markets Inc. also acted as financial advisor to VICI Properties. Hogan Lovells US LLP and Kramer Levin Naftalis & Frankel LLP served as legal advisors to VICI Properties.
