Gaming and Recreation Holdings Inc. (GLPI) has reached an agreement to purchase the real estate holdings of three Live! Casino locations from its operator, Cordish Enterprises, for $1.81 billion.
GLPI will obtain the three casino properties from Cordish for $1.8 billion in a sale-leaseback arrangement and lease them back to Cordish, who will continue to oversee their daily operations. The three properties include Live! Casino & Hotel Maryland, Live! Casino & Hotel Pennsylvania, and Live! Casino Pittsburgh.
The transaction for the Maryland property is anticipated to conclude by the end of the year, while the Pennsylvania and Pittsburgh locations are expected to close in early 2022, as per the agreement.
The $1.81 billion encompasses an undisclosed sum of cash, GLPI assuming debt owed by Cordish on the properties, and $323 million in newly issued operating partnership units – shares specifically for the partnership between GLPI and Cordish.
The lease duration is for 39 years, with an option to extend for up to 60 years, at an annual rent of $125 million, escalating by 1.75% annually.
This arrangement encompasses not just tangible properties but also a “firm alliance” for future Cordish casino ventures, along with potential financial collaborations between GLPI and Cordish in other segments of Cordish’s property and operational holdings.
Peter Carlino, Head and Chief Executive of GLPI, stated they are thrilled to join forces with Cordish, a prominent national developer of extensive experiential property projects, gambling establishments, lodging facilities, and entertainment zones. Carlino mentioned they have long respected Cordish’s creation of the highly successful “Live!” brand in these entertainment, gaming, and hospitality areas.
“Beyond the property transactions for these three assets, we are enthusiastic about collaborating with Cordish to utilize the financial and property development strengths and resources of both entities across a variety of strategic possibilities in the future,” Carlino added.
“We have long respected GLPI’s innovative structure and achievements as a public platform,” added David Cordish, Head of The Cordish Companies. “Cordish is delighted to partner with GLPI on this series of transactions, which brings together recognized leaders in our respective fields.
“We anticipate continuing to deliver top-tier entertainment experiences in the markets we presently serve, and collaborating with GLPI to expand the ‘Live!’ brand in the future,” Cordish remarked.
GLPI recently reported earnings of $298.
Cordishs financial performance for the third quarter of 2021 experienced a decline, registering at $7 million. This represents a reduction compared to the same period in the previous year.
Despite this dip, Cordish has taken proactive steps to bolster its leadership team in pursuit of its ambitious growth objectives. Earlier this year, the company appointed Cathy Beeding as Executive Vice President and General Counsel, and Suzanne Trout as Executive Vice President and Chief Marketing Officer.
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