Gaming and Leisure Properties (GLPI) has closed real estate asset deals on three properties in South Dakota and Nevada for $105m.
The operator now owns assets of the Silverado Franklin Hotel & Gaming Complex, the Deadwood Mountain Grand casino and Baldini’s Casino.
As part of the deal, GLPI has set up a new tenant relationship agreement with Strategic Gaming Management at the resorts. Specifically, the company will sign two cross-defaulted triple-net lease agreements.
Each of these is for an initial 25 years and includes the option to add two more 10-year renewal periods. Annual rent for the new lease agreement will total $9.2m.
GLPI Chairman and CEO Peter Carlino commented on the purchase and its advantages by saying, “With our acquisition of the Silverado, DMG, and Baldini’s properties, we are pleased to further diversify our property portfolio while expanding our tenant roster through our new relationship with Strategic, a dynamic and growing gaming operator.
“The addition of Strategic’s properties expands our portfolio to 65 properties across 20 states with 9 tenants and is expected to be immediately accretive to GLPI’s operating results. Our initiatives to expand our portfolio remain active in the current environment as our reputation as the gaming landlord of choice is further strengthened and reinforced by this transaction.”
Strategic CEO J. Grant Lincoln said the company is eager to team up with GLPI at these three casino resorts.
He commented, “We are pleased to begin our partnership with GLPI. Our operating approach, informed by decades of successful experience in competitive gaming markets, is laser-focused on bottom-line results.
“Our platform is well positioned for thoughtful, ongoing growth. As we explored the options for a sale-leaseback partner, GLPI rose above the rest given their unique approach and true emphasis on partnership as well as their deep experience as gaming operators. We look forward to collaborating with GLPI to prudently grow our operations over the coming years.”
