Gaming and Leisure Properties Closes on $250 Million Land Acquisition, the Site for Bally’s Future Chicago Flagship Casino
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) has completed its $250 million acquisition of the land for Bally's future Chicago flagship casino from Blue Owl Capital. This purchase is part of a larger agreement with Bally's (NYSE: BALY) announced in July. GLPI will own substantially all of the real estate and improvements related to the Chicago casino and hotel for a total investment of $1.19 billion, resulting in a blended initial cash investment yield of 8.4%. The current lease will be assumed by a GLPI affiliate with an annual rent of $20 million, representing an initial cash yield of 8.0%. Stabilized rent coverage for the lease is expected to be in the range of 2.0x – 2.4x. GLPI's Chairman and CEO, Peter Carlino, highlighted the significance of this acquisition for the development of Bally's Chicago, which aims to be a premier destination in the nation's third-largest metropolitan area.
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) ha completato l'acquisizione di 250 milioni di dollari del terreno per il futuro casinò di punta di Bally a Chicago da Blue Owl Capital. Questo acquisto fa parte di un accordo più ampio con Bally's (NYSE: BALY) annunciato a luglio. GLPI possederà sostanzialmente tutti gli immobili e i miglioramenti relativi al casinò e all'hotel di Chicago per un investimento totale di 1,19 miliardi di dollari, con un rendimento iniziale medio in contante dell'8,4%. L'attuale contratto di locazione sarà assunto da un affiliato di GLPI con un canone annuo di 20 milioni di dollari, rappresentando un rendimento iniziale in contante dell'8,0%. La copertura del canone stabilizzato per il contratto di locazione è prevista nell'intervallo di 2,0x – 2,4x. Il Presidente e CEO di GLPI, Peter Carlino, ha evidenziato l'importanza di questa acquisizione per lo sviluppo del casinò di Bally a Chicago, che mira a diventare una destinazione di punta nella terza area metropolitana più grande del paese.
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) ha completado la adquisición de 250 millones de dólares del terreno para el futuro casino insignia de Bally en Chicago de Blue Owl Capital. Esta compra forma parte de un acuerdo más amplio con Bally's (NYSE: BALY) anunciado en julio. GLPI poseerá sustancialmente todos los bienes raíces y mejoras relacionados con el casino y el hotel de Chicago por un inversión total de 1.19 mil millones de dólares, lo que resulta en un rendimiento inicial de efectivo mixto del 8.4%. El contrato de arrendamiento actual será asumido por una afiliada de GLPI con un alquiler anual de 20 millones de dólares, lo que representa un rendimiento inicial en efectivo del 8.0%. Se espera que la cobertura del alquiler estabilizado para el contrato de arrendamiento esté en el rango de 2.0x a 2.4x. El presidente y CEO de GLPI, Peter Carlino, destacó la importancia de esta adquisición para el desarrollo del casino de Bally en Chicago, que tiene como objetivo convertirse en un destino principal en la tercera área metropolitana más grande del país.
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI)는 Blue Owl Capital로부터 Bally의 향후 시카고 플래그십 카지노를 위한 토지를 2억 5천만 달러에 인수했다고 발표했습니다. 이 구매는 7월에 발표된 Bally와의 보다 큰 계약의 일환입니다. GLPI는 시카고 카지노와 호텔과 관련된 거의 모든 부동산과 개선 사항을 소유할 것입니다, 총 투자액은 11억 9천만 달러에 달하며, 초기 현금 투자 수익률은 8.4%입니다. 현재의 임대계약은 GLPI의 계열사가 연간 임대료 2천만 달러로 인수할 것이며, 이는 초기 현금 수익률이 8.0%에 해당합니다. 임대의 안정화된 수익 보장은 2.0배에서 2.4배 사이가 될 것으로 예상됩니다. GLPI의 회장 겸 CEO인 Peter Carlino는 이 인수가 Bally의 시카고 개발에 있어 얼마나 중요한지를 강조하며, 이는 국가에서 세 번째로 큰 대도시 지역의 주요 목적지가 되기 위한 것입니다.
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) a achevé l'acquisition d'un terrain de 250 millions de dollars pour le futur casino phare de Bally à Chicago auprès de Blue Owl Capital. Cet achat fait partie d'un accord plus vaste avec Bally's (NYSE: BALY) annoncé en juillet. GLPI possédera pratiquement tous les biens immobiliers et améliorations liés au casino et à l'hôtel de Chicago pour un investissement total de 1,19 milliard de dollars, entraînant un rendement initial combiné en espèces de 8,4%. Le bail actuel sera repris par une filiale de GLPI avec un loyer annuel de 20 millions de dollars, représentant un rendement initial en espèces de 8,0%. La couverture des loyers stabilisés pour le bail devrait être comprise entre 2,0x et 2,4x. Le président et PDG de GLPI, Peter Carlino, a souligné l'importance de cette acquisition pour le développement du casino de Bally à Chicago, qui vise à devenir une destination de choix dans la troisième plus grande zone métropolitaine du pays.
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) hat die Akquisition von 250 Millionen Dollar für das Grundstück des zukünftigen Bally-Flaggschiff-Casinos in Chicago von Blue Owl Capital abgeschlossen. Dieser Kauf ist Teil eines größeren Vertrags mit Bally's (NYSE: BALY), der im Juli angekündigt wurde. GLPI wird fast alle Immobilien und Verbesserungen im Zusammenhang mit dem Casino und Hotel in Chicago besitzen, mit einer gesamt Investition von 1,19 Milliarden Dollar, was zu einer gemischten Anfangsrendite von 8,4% führt. Der aktuelle Mietvertrag wird von einem GLPI-Ableger mit einer Jahresmiete von 20 Millionen Dollar übernommen, was einer anfänglichen Bar-Rendite von 8,0% entspricht. Die stabilisierte Mietabdeckung für den Vertrag wird voraussichtlich im Bereich von 2,0x – 2,4x liegen. Der Vorsitzende und CEO von GLPI, Peter Carlino, hob die Bedeutung dieser Akquisition für die Entwicklung von Ballys Chicago hervor, das ein Spitzenziel in der drittgrößten Metropolregion des Landes werden soll.
- Acquisition of prime real estate for $250 million in Chicago, the third-largest U.S. metropolitan area
- Total investment of $1.19 billion with a blended initial cash investment yield of 8.4%
- Annual rent of $20 million, representing an initial cash yield of 8.0%
- Expected stabilized rent coverage between 2.0x and 2.4x
- Transactions with Bally's expected to be accretive to financial results
- Large capital investment of $1.19 billion, potentially increasing financial leverage
- Dependency on Bally's success in operating the Chicago casino for stable returns
Insights
The $250 million land acquisition by Gaming and Leisure Properties (GLPI) marks a significant step in their expansion strategy. With an initial cash yield of 8.0% and a blended initial cash investment yield of 8.4% for the total $1.19 billion investment, this deal appears financially attractive. The expected rent coverage of 2.0x - 2.4x suggests a healthy margin of safety for GLPI's investment.
The transaction's structure, involving a sale-leaseback arrangement, is a common and often beneficial approach in the gaming real estate sector. It allows GLPI to generate steady, long-term cash flows while Bally's can free up capital for operations and development. The 8.3% blended initial cash yield across multiple properties indicates a strong return on investment, potentially boosting GLPI's bottom line and shareholder value.
The Chicago casino project represents a strategic move into a major untapped market. As the third largest metropolitan area in the U.S., Chicago offers significant potential for a high-profile casino resort. The location's promise as a "must-visit destination" could drive substantial foot traffic and revenue.
However, it's important to consider the competitive landscape and regulatory environment in Chicago. The success of this venture will depend on factors such as local reception, tourism trends and potential future competition. The project's ability to attract both local and out-of-town visitors will be key to achieving the projected returns and maintaining the expected rent coverage ratios.
GLPI's acquisition of the Chicago land and assumption of the lease demonstrates a savvy real estate strategy. By owning substantially all of the real estate and improvements related to the casino and hotel, GLPI positions itself to benefit from potential property value appreciation in addition to the steady rental income.
The
WYOMISSING, Pa., Sept. 11, 2024 (GLOBE NEWSWIRE) -- Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) (“GLPI” or “the Company”), announced today that it completed its previously announced
With the completion of GLPI’s purchase of the Chicago land, the current lease in place with Blue Owl Capital will be assumed by an affiliate of GLPI and amended to reflect the negotiated annual rent of
Peter Carlino, Chairman and CEO of GLPI commented, “The completion of the Chicago land purchase is a significant milestone toward the development of Bally’s Chicago, which promises to be a must-visit destination casino resort property in the heart of Chicago. Our transactions with Bally’s related to Chicago and our real estate acquisitions at Bally’s Kansas City Casino and Bally’s Shreveport Casino & Hotel will be accretive to our financial results, resulting in an
About Gaming and Leisure Properties, Inc.
GLPI is engaged in the business of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements, pursuant to which the tenant is responsible for all facility maintenance, insurance required in connection with the leased properties and the business conducted on the leased properties, taxes levied on or with respect to the leased properties and all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including our expectations regarding the benefits of the transaction to our shareholders. Forward-looking statements can be identified by the use of forward-looking terminology such as “expects,” “believes,” “estimates,” “intends,” “may,” “will,” “should” or “anticipates” or the negative or other variation of these or similar words, or by discussions of future events, strategies or risks and uncertainties. Such forward-looking statements are inherently subject to risks, uncertainties and assumptions about GLPI and its subsidiaries, including risks related to the following: GLPI’s ability to successfully consummate the announced transactions with Bally’s, including the ability of the parties to satisfy the various conditions to advancing loan proceeds, including receipt of all required regulatory approvals and other approvals and consents, or other delays or impediments to completing the proposed transactions; the potential negative impact of recent high levels of inflation (which have been exacerbated by the armed conflict between Russia and Ukraine) on our tenants' operations; GLPI's ability to maintain its status as a REIT; our ability to access capital through debt and equity markets in amounts and at rates and costs acceptable to GLPI; the impact of our substantial indebtedness on our future operations; changes in the U.S. tax law and other state, federal or local laws, whether or not specific to REITs or to the gaming or lodging industries; and other factors described in GLPI’s Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, each as filed with the Securities and Exchange Commission. All subsequent written and oral forward-looking statements attributable to GLPI or persons acting on GLPI’s behalf are expressly qualified in their entirety by the cautionary statements included in this press release. GLPI undertakes no obligation to publicly update or revise any forward-looking statements contained or incorporated by reference herein, whether as a result of new information, future events or otherwise, except as required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release may not occur as presented or at all.
| Contact: | |
| Gaming and Leisure Properties, Inc. | Investor Relations |
| Matthew Demchyk, Chief Investment Office | Joseph Jaffoni, Richard Land, James Leahy at JCIR |
| 610/401-2900 | 212/835-8500 |
| investorinquiries@glpropinc.com | glpi@jcir.com |
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