MGM Resorts International is selling the MGM Grand and Mandalay Bay resorts and casinos on the Vegas strip, for about $2.5bn.

The sale is reported by the Los Angeles Times, which says it is entering into a joint venture with private equity company Blackstone and MGM Growth Properties LLC.

The joint venture will be owned 50.1% by MGM Growth Properties and 49.9% by Blackstone.

It will also acquire the real estate assets of Mandalay Bay from MGM Growth Properties and lease both properties to MGM Resorts for an initial rent of $292 million. The total value of the two transactions is $4.6bn.

Blackstone has been making inroads into the events and hospitality industries in the past year. In October 2018, it became owner of the UK’s NEC Group for a reported £800m. It is also the owner of international events organiser Clarion Events.

The deal is targeted to close in the first quarter of 2020.