GLPI expands portfolio with acquisition of three casinos in Nevada & South Dakota

GLPI expands portfolio with acquisition of three casinos in Nevada & South Dakota

In a significant strategic move to expand its portfolio in the gaming landscape, the Gaming & Leisure Properties Incorporated (GLPI) has acquired the real estate assets of three casinos – two in South Dakota and one in Nevada for a total of $105 million. The fresh acquisitions, which include the Silverado Franklin Hotel & Gaming Complex and the Deadwood Mountain Grand Casino in Deadwood (South Dakota) and Baldini’s Casino in Sparks (Nevada), marks further diversification of GLPI’s portfolio.

At the same time, GLPI and Strategic Gaming Management have reportedly decided to enter into two cross-defaulted triple-net lease deals, with each of the two deals earmarked for an initial 25-year term with a maximum of two renewal periods spanning ten years each. For capital enhancements, an amount of $5 million has been allocated by GLPI. Thus, the total amount of investment surges to $110 million.

Under the terms of the new agreements, annual rent under the new leases will initially be $9.2 million. It includes capital-improvement funding that reflects a capitalization rate of 8.4 per cent. There will be a fixed annual increase of 2 per cent in rent, starting from the third year. From the eleventh year, rent will escalate by more than 2 per cent or consumer price index (CPI) capped at 2.5 per cent.

Peter Carlino, Chairman and Chief Executive Officer (CEO) of GLPI, said that he was extremely enthusiastic about the acquisition, as it allowed his company to further diversify its portfolio, while expanding its tenant roster through its new collaboration with Strategic.

For his part, Strategic Gaming Management CEO J. Grant Lincoln added, “As we explored the options for a sale-leaseback partner, GLPI rose above the rest, given their unique approach and emphasis on partnership, as well as their experience as gaming operators.”

Silverado Franklin is a famous gambling-friendly property in South Dakota. Opened in 1990, it offers 245 slots, 16 table games, 4 bars, 2 restaurants, and a 68-room hotel.

Deadwood Mountain Grand offers a 141 slot machines, 8 table games, and a couple of food & beverage locations, in addition to a sportsbook. Baldini’s Casino features nearly 500 slots in a 43,000-square-foot casino, a sportsbook, in addition to multiple restaurants and bars.

GLPI’s fresh acquisitions of two casino assets in South Dakota and one in Nevada signifies the company’s robust commitment to forging strategic partnerships to expand and grow further within the gaming industry. By establishing new partnerships, GLPI is poised to strengthen its position as a leading player in the gaming sector.

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