US – Hard Rock leases Jack Cincinnati Casino from Caesar’s spin-off VICIBy Phil - 23 September 2019
Hard Rock International will leases and operate Jack Cincinnati Casino from Caesar’s spin-off VICI Properties, who bought the downtown casino for US$558m.
While the casino will continue to operate under the current branding, Hard Rock Casino Cincinnati will rebrand and open in spring 2020. The property is situated on 22 acres in the Broadway Commons area of downtown Cincinnati and features 100,000 square feet of gaming space with approximately 1,800 gaming machines and 100 table games. Additionally, the property contains 33,000 square feet of meeting space, six high-quality restaurants and two bars. New property improvements will be announced by Hard Rock at a later date.
VICI has confirmed a triple-net lease agreement with Hard Rock International with an initial total annual rent of $42.75m and an initial term of 15 years, with four 5-year tenant renewal options. The tenant’s obligations under the lease are guaranteed by Seminole Hard Rock Entertainment, which maintains an investment grade rating from S&P Global Ratings and Fitch Ratings.
John Payne, President and Chief Operating Officer of VICI Properties said: “We are thrilled to close the JACK Cincinnati transaction, diversifying our geographic exposure by acquiring one of only four full-scale casino properties in the limited license state of Ohio, which continues to be one of the healthiest and fastest growing regional gaming markets across the country. This acquisition adds 22 acres of high-quality urban core real estate to our portfolio and formally establishes our third tenant relationship through a long-term partnership with Hard Rock, an international leader in gaming, entertainment and hospitality experiences.”
David Kieske, EVP, Chief Financial Officer of VICI Properties, added: “We financed the acquisition of JACK Cincinnati by utilising cash on our balance sheet, adding $42.75 million of annual rent directly to the bottom line. As we look forward to our pending transactions with Century Casinos, Inc. and Eldorado Resorts, Inc., which collectively will add an additional $277.5m of rent upon closing, through our successful June 2019 share offering we have secured all of the equity funding required to close these transactions on a leverage neutral basis.”
Opened in March 2013, JACK Cincinnati is situated on 22 acres in the Broadway Commons area of downtown Cincinnati. The property features 100,000 square feet of gaming space with approximately 1,800 gaming machines and 100 table games. Additionally, the property contains 33,000 square feet of meeting space, six high-quality restaurants, and two bars.