Gaming and Leisure Properties (GLPI) has acquired real property assets in Rhode Island from Bally’s Corporation for a total of $1bn. It has signed a binding term sheet with Bally’s to buy two Rhode Island casino properties: Bally’s Twin River Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel.
Under the terms of the transaction, Bally’s will immediately lease back both facilities and continue to own and manage all the gaming operations of the casinos on an uninterrupted basis.
Both properties are expected to be added to the existing Bally’s master lease between GLPI and Bally’s, with incremental rent of $76.3m. This master lease includes three Bally’s casinos: Dover Casino Resort, Evansville Casino & Hotel, Quad Cities Casino & Hotel and Black Hawk Casinos.
GLPI has committed to consummate the Bally’s acquisitions and agreed to pre-fund, at the consent of the company, a deposit of up to $200m. This amount will be credited or repaid to GLPI by 31 December 2023, along with a $9m transaction fee payable at closing.
CEO of GLPI Peter Carlino commented: “GLPI is delighted to extend our relationship with Bally’s that brings to the table a high-growth track record through their ownership of properties in attractive regional gaming markets.
“Bally’s properties are currently the only two gaming facilities in Rhode Island and the transaction again diversifies our portfolio as the state becomes our 18th US jurisdiction. This transaction… comes with a conservative rent and master lease structure that offers GLPI material downside protection while offering additional long-term growth.”
GLPI is a real-estate investment trust specializing in casino properties, based in Wyomissing, Pennsylvania. It was formed in November 2013 as a corporate spin-off from Penn National Gaming. The company owns 55 casino properties, all of which are leased to other companies.
Carlino is pleased with GLPI’s newest acquisition saying: “We thank Bally’s for its trust in GLPI and look forward to fostering this growing relationship going forward.”
