PENN Entertainment and Gaming & Leisure Properties (GLPI) have signed a new master lease agreement for seven of the company’s properties, which includes a funding plan for several relocation and development projects. Pending regulatory approvals, the deal will take effect on January 1, 2023.
Through the master lease agreement with Gaming and Leisure, the company said it plans to relocate its Joliet and Aurora riverboat casinos to new land-based locations. PENN has announced it will also add a second hotel tower to its M Resort location in Nevada and build a new hotel in Ohio.
PENN Entertainment President and CEO Jay Snowden commented: “We are delighted to announce these exciting new growth projects, which we expect will generate strong free cash flow returns and create long-term value for our shareholders.
“Our casino properties remain at the core of our omni-channel approach to entertainment, which combines best-in-class retail operations and a database of more than 26 million myChoice members with a rapidly growing interactive and media footprint.”
Under the terms of the deal, GLPI will fund the riverboat casino relocation projects, with up to $225m for the Aurora relocation and up to $350m for Hollywood Casino Joliet.
The company will allocate funds as well for the building projects in both Nevada and in Ohio.
Gaming & Leisure Properties CEO Peter Carlino said: “Our ongoing support of our roster of leading regional gaming operator tenants through innovative transaction structures has proven to be mutually beneficial and we are confident that this new master lease with PENN Entertainment will extend our record of success on this front.”
