Gaming and Leisure Properties completes Live! Casino Maryland acquisition
The company has purchased the casino and hotel from The Cordish Companies for $1.14bn.
US.- Gaming and Leisure Properties (GLPI) has completed the purchase of the Live! Casino and Hotel Maryland from The Cordish Companies for $1.14bn.
In addition to 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.
According to GLPI, the transaction was funded with the assumption of the existing $363m debt of The Cordish Companies and issuing approximately $200m of operating partnership units.
The lease has an annual cash rent of $75m for an initial term of 39 years, with a maximum term of 60 years.
Peter Carlino, Chairman and CEO of GLPI, said: “The Cordish Companies is renowned for creating large-scale experiential real estate projects, casinos, hospitality and entertainment districts, and we believe its Live! brand and Live! Maryland together exemplifies their track record of developing and operating success.
“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 via our industry-leading, high-quality tenant roster.
In early December, GLPI agreed to buy the real estate assets of three of The Cordish Companies’ Live! casino properties.
Cordish will relinquish ownership of the real estate at Live! Casino & Hotel Maryland, Live! Casino & Hotel Philadelphia and Live! Casino Pittsburgh but will lease back the properties and “continue uninterrupted to own, control and manage all the gaming operations of the facilities”, according to a press release.
