Gaming and Leisure Properties acquires land under Hard Rock Casino in Illinois
GLPI has acquired the land associated with the Hard Rock Casino Rockford development from an affiliate of 815 Entertainment.
US.- Gaming and Leisure Properties (GLPI) has announced that it has acquired the land associated with the Hard Rock Casino Rockford project in Illinois from an affiliate of 815 Entertainment for $100m. GLPI entered into a ground lease with 815 Entertainment for a 99-year term. The initial annual rent is $8m, subject to fixed 2 per cent annual escalation from the first anniversary.
GLPI has also committed to providing up to $150m of development funding via a senior secured delayed draw term loan, subject to regulatory review. Any borrowings under the loan will be subject to an interest rate of 10 per cent. The term loan has a draw period of up to 1-year and a maximum outstanding period of up to 6 years. It is prepayable without penalty following the opening of Hard Rock Casino in Rockford.
The permanent Hard Rock Casino Rockford resort will have a 65,000-square-foot casino with about 1,500 slot machines, a sportsbook and 60 table games, including blackjack, roulette and craps. It may also include a poker room of 10-12 tables. Hard Rock has plans for a 250-room hotel. The project is currently under construction and the is scheduled to open in August 2024.
Peter Carlino, GLPI’s chairman and CEO, said: “Our agreements with 815 Entertainment will allow GLPI to expand its footprint with the addition of a new ground lease, a new tenant, and a commitment to provide potential funding. We believe this is an attractive ground lease transaction for our shareholders as the strong initial results at 815 Entertainment’s temporary facility demonstrate the strength of the location and the depth of the market.
“The Hard Rock brand is world-renowned and will support and solidify the new casino’s position as a tourist destination and entertainment venue. Hard Rock is the property manager and an equity investor in 815 Entertainment, bringing its world-class management team to the project.
Jon Lucas, chief operating officer for Hard Rock International, added: “Hard Rock’s incredible financial strength and development trajectory is only made stronger with great partners like GLPI and 815 Entertainment. We are really looking forward to opening another world-class entertainment property with Hard Rock Casino Rockford.”
Walker’s Bluff Casino Resort opens in Illinois
The new Walker’s Bluff Casino and Resort in southern Illinois opened last week after a ribbon-cutting ceremony attended by casino officials, local leaders and Illinois governor JB Pritzker. The $147m new resort is a 190,000 square foot facility with a 113-room hotel, spa and fitness room and a variety of restaurants and bars. The gaming area features 650 slot machines and 14 table games. A 1,200-seat event centre will host entertainment, meetings and conventions.
