Gaming and Leisure Properties, Inc. (GLPI), a real estate investment trust (REIT) operating out of Pennsylvania, announced today the completion of one part of the acquisition of three land-based casino properties operated by The Cordish Companies.
Live! Maryland Acquisition Complete
GLPI stated its $1.14 billion acquisition of Live! Casino & Hotel Maryland completed, leaving the company to close the acquisition of the remaining assets of the deal announced earlier in the month, Live! Casino Pittsburgh and Live! Casino & Hotel Philadelphia for a total consideration of $1.81 billion.
By the time of the acquisition agreement for the three casino properties, GLPI said Live! Maryland acquisition was expected to close by the end of the year, while the other two properties would probably become part of its portfolio at the beginning of 2022.
Besides the acquisition of the land and real estate assets of Live! Maryland, GLPI entered into a future-oriented partnership deal with The Cordish Companies that would facilitate casino developments and financing in other areas of operation from the portfolio of the real estate and entertainment group based in Maryland.
GLPI Chairman and CEO Peter Carlino outlined the importance of the transaction and the impact of the addition of Live! Maryland to GLPI’s portfolio by further diversifying its “roster of leading operators.”
“The Cordish Companies is world-renowned for creating large-scale experiential real estate projects, casinos, hospitality and entertainment districts and we believe their Live! brand and their Live! Maryland together exemplify their track record of development and operating success.”Peter Carlino, Chairman and CEO, GLPI
Payment and Future Operation
GLPI said it partly funded the transaction by assuming the existing debt of The Cordish Companies, approximately $363 million, and issuing 4.35 million of operating partnership units to the amount of $200 million, while the bulk of the price was paid out of available cash. Part of the cash was generated via GLPI’s recent issuance of senior unsecured notes and common stock.
“Further, our new lease with Cordish has strong rent coverage and is part of an accretive overall transaction that positions our Company to continue to build value for shareholders through via our industry-leading, high-quality tenant roster.”Peter Carlino, Chairman and CEO, GLPI
GLPI entered into a single asset triple net lease with The Cordish Companies simultaneously with the closing of the acquisition that would ensure the uninterrupted ownership, control, and management of the operations at the land-based gaming property.
The lease agreement provides for an initial term of 39 years that could be further extended to up to 60 years via inclusive tenant renewal options, and set the initial cash rent to $75 million annually that would escalate by 1.75% after the second year.