Operator News
US – Gaming and Leisure Properties enters into Triple Net Master Lease for Pennsylvania Live! casinos
By Phil - 3 March 2022
Gaming and Leisure Properties, has completed the acquisition of the land and real estate assets of Live! Casino & Hotel Philadelphia and Live! Casino Pittsburgh from The Cordish Companies for $674m.
The company funded the transaction by assuming approximately $423m in debt (which the Company has repaid), and issuing approximately $137 million of operating partnership units (3m total units), with the balance paid from cash on hand, which was in part generated by its December issuance of senior unsecured notes and common stock.
Simultaneous with the closing of the transaction, Gaming and Leisure Properties entered into a master lease with Cordish, pursuant to which Cordish will continue its uninterrupted ownership, control and management of the operations of Live! Philadelphia and Live! Pittsburgh. The PA Live! Master Lease has an initial annual cash rent of $50m and an initial term of 39 years with a maximum term of 60 years, inclusive of tenant renewal options, as well as a fixed annual lease escalation of 1.75 per cent beginning in the lease’s third year.
Peter Carlino, Chairman and CEO of Gaming and Leisure Properties commented: “We are delighted to add the Live! Pennsylvania properties to our portfolio and expand our presence in the attractive Pennsylvania market with truly world-class properties. The Cordish Companies is world renowned for creating large-scale experiential real estate projects, casinos, hospitality and entertainment districts and we believe their Live! brand exemplifies their track record of development and operating success. Further, our PA Live! Master Lease with Cordish has strong rent coverage and is part of an accretive overall transaction that positions Gaming and Leisure Properties to continue to build value for shareholders through our industry- leading, high quality tenant roster. We are excited to welcome the Live! Pennsylvania properties to the GLPI family and we look forward to working with their team to support the long-term success of the properties. In addition, our announced transactions with Bally’s Corporation for properties located in Rock Island, Illinois and Black Hawk, Colorado are now expected to close in the first half of 2022, while the transactions for Tropicana Las Vegas are expected to close by year end.”
Live! Philadelphia, located in the heart of the Philadelphia Stadium District, includes more than 510,000 square feet of gaming, hotel, dining and entertainment space. It features more than 2,100 slot machines, 116 live action table games, a 29 table poker room, 15 electronic table games, and a FanDuel Sportsbook and Lounge. The property also has a 208 room hotel, a multi-level structured parking facility and surface parking as well as a six room event center featuring 15,000 square feet of customizable meeting space to accommodate up to 1,000 guests. Finally, it includes multiple dining and nightlife options including the Prime Rib, Sports and Social Philly, and Luk Fu.
Live! Pittsburgh is situated directly off Route 30 at the Westmoreland Mall, approximately 30 miles from downtown Pittsburgh. The 100,000 square foot facility features 750 slots and approximately 30 live-action table games plus a FanDuel Sportsbook.
