Gaming and Leisure Properties completes acquisition of two Bally’s casino properties
The transaction involves Bally’s Kansas City Casino and Bally’s Shreveport Casino & Hotel.
US.- Gaming and Leisure Properties has completed the previously announced $395m acquisition of two properties’ land and real estate assets from Bally’s Corporation. The venues are Bally’s Kansas City Casino, in Missouri, and Bally’s Shreveport Casino & Hotel, in Louisiana.
The two properties have been put into a new Bally’s Master Lease that is cross-defaulted with the company’s existing Bally’s Master Lease, with an initial annual cash rent of $32.2m representing an 8.2% initial cash capitalization rate.
Peter Carlino, chairman and CEO of GLPI said: “We are pleased to announce the completion of our sale-leaseback transactions for Bally’s properties in Kansas City and Shreveport, which we expect will be accretive to our financial results. This transaction was executed at an attractive cap rate and expands our partnership with Bally’s while strengthening our portfolio which has now grown to include 67 high-quality regional gaming assets.”
Kansas City Casino is located on the Missouri River in Kansas City, Missouri, and recently underwent a $70m renovation and expansion. The property features a 42,000-square-foot casino with over 900 slot machines, 24 table games, and over 50 video poker and keno terminals. It offers three restaurants, nearly 3,000 square feet of event space and several entertainment lounges.
Shreveport Casino & Hotel is located along the Red River in downtown Shreveport, Louisiana. The property features a 30,000-square-foot casino with over 950 slot machines, over 50 table games, a poker room, and a Bally Bet Sportsbook. It has a 400-room hotel, a spa, three restaurants, event spaces, live entertainment, and two nightclubs.
Earlier this year, Gaming and Leisure Properties agreed to provide up to $111m in funding to Queen Casino & Entertainment for the move to land and hotel renovation of Belle of Baton Rouge in Baton Rouge, Louisiana. The total costs for the new on-land venue are expected to exceed $141m, with the riverboat casino continuing to operate throughout the construction period.
Bally’s Corporation reported revenue of $630m for the quarter ended September 30. The company’s Casinos & Resorts and International Interactive segments saw revenue declines, while North America Interactive saw growth.
