Gaming and Leisure Properties acquires three casinos
The company has bought casinos in South Dakota and Nevada.
US.- Gaming and Leisure Properties (GLPI) has acquired the real estate assets of the Silverado Franklin Hotel & Gaming Complex, the Deadwood Mountain Grand Casino and Baldini’s Casino for $105m. GLPI and affiliates of Strategic Gaming Management will enter into two cross-defaulted triple-net lease agreements, each for an initial 25-year term with two ten-year renewal periods.
Silverado Franklin Hotel & Gaming Complex, in Deadwood, South Dakota, opened in 1990. It’s one of the largest gaming facilities in the state, with 245 slot machines, 16 table games, two restaurants, four bars and a 68-room hotel. Deadwood Mountain Grand opened in 2011. The 11-acre property offers 141 slots and eight table games. Baldini’s Casino is located in Sparks, Nevada. It has approximately 492 slot machines and opened in 1988.
GLPI provided $5m in capital improvement proceeds at the closing of the transactions for a total investment of $110m. The initial aggregate annual cash rent for the new leases is $9.2m.
Peter Carlino, GLPI’s chairman and CEO, said: “With our acquisition of the Silverado, DMG, and Baldini’s properties, we are pleased to further diversify our property portfolio while expanding our tenant roster through our new relationship with Strategic, a dynamic and growing gaming operator. The addition of Strategic’s properties expands our portfolio to 65 properties across 20 states with 9 tenants and is expected to be immediately accretive to GLPI’s operating results. Strategic is led by CEO J. Grant Lincoln who formed the company in 2009.
“Under Grant’s stewardship, Strategic operates three properties with solid leadership positions in their respective markets, while generating growth in patronage and cash flows. With the initial transaction and our right of first refusal on growth opportunities, we look forward to the start of a long-term mutually beneficial relationship with Grant and Strategic.”
See also: Gaming and Leisure Properties buys Tioga Downs Casino Resort real estate
J. Grant Lincoln, Strategics’ CEO added: “We are pleased to begin our partnership with GLPI. Our operating approach, informed by decades of successful experience in competitive gaming markets, is laser focused on bottom line results. Our platform is well positioned for thoughtful, ongoing growth. As we explored the options for a sale-leaseback partner, GLPI rose above the rest given their unique approach and true emphasis on partnership as well as their deep experience as gaming operators. We look forward to collaborating with GLPI to prudently grow our operations over the coming years.”
