GLPI closes on $250m land acquisition
The site, purchased from Blue Owl Capital, will be where Bally’s future permanent Chicago casino is built.
As part of its broader agreement with Bally’s Corporation, Gaming and Leisure Properties (GLPI) has announced that it closed on the $250m land acquisition agreement it had reached with Blue Owl Capital in July. Now, the land in which GLPI bought will be where Bally’s future permanent casino is built in Chicago, Illinois.
“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,” GLPI Chairman and CEO Peter Carlino said.
“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 8.3% blended initial cash yield and conservative rent coverage. We are pleased to be working with the Bally’s team, the host community and various stakeholders in Chicago to deliver a world-class entertainment center in the nation’s third largest metropolitan area.”
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 $20m, representing an initial cash yield of 8.0%.
GLPI will own substantially all of the real estate and improvements related to the Chicago casino and hotel for a total investment of $1.19bn, resulting in a blended initial cash investment yield of 8.4%.
On July 12, Bally’s signed a binding term sheet with GLPI to secure $2.07bn in funding for the ongoing permanent casino and tower development.
Once completed, Bally’s Chicago will be home to 4,000 gaming positions, as well as to an exhibition hall, 500-room hotel, a 3,000-seat theater and 10 restaurants.
The casino’s target opening date is set for September 2026.
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