GLPI acquires three Cordish casino properties in $1.8bn leaseback deal
Under the agreement, GLPI will lease the properties – Live! Casino & Hotel Maryland, Live! Casino & Hotel Philadelphia, and Live! Casino Pittsburgh – back to Cordish, which will continue controlling their day-to-day running and operations.
The transaction for the Maryland property is expected to close by the end of the year, while the deals for the Philadelphia and Pittsburgh venues are expected to be completed in early 2022.
The $1.81bn includes an undisclosed amount of cash, GLPI assuming debt Cordish owes on the properties and $323m of newly issued operating partnership units – shares specifically for the partnership between GLPI and Cordish.
The leases are set for an initial term of 39 years up to a 60 year maximum, with annual rent set at $125m which will rise by 1.75% every year.
The deals extend beyond the real estate assets, also including a “binding partnership” on future Cordish casino developments in addition to potential financing partnerships between GLPI and Cordish – in other areas of Cordish’s portfolio of real estate and operating businesses.
GLPI chairman and CEO Peter Carlino said: “We are excited to establish a relationship with The Cordish Companies, one of the country’s preeminent developers of large-scale experiential real estate projects, casinos, hospitality and entertainment districts. We have long admired Cordish for their creation of the highly successful ‘Live!’ brand across these entertainment, gaming and hospitality districts.
“In addition to the real estate transaction for the three properties, we are excited to partner with Cordish on a range of future strategic opportunities that can leverage the financial and real estate development strengths and resources of both companies.”
GLPI recently recorded revenue figures of $298.7m for the third quarter of 2021, representing a decrease on the same period last year.
Meanwhile Cordish finalised two executive hires earlier this year – Cathy Beeding as executive vice president and general counsel and Suzanne Trout as executive vice president and chief marketing officer – to aid with the company’s growth plans.
“We have long admired GLPI’s pioneering structure and accomplishments as a public platform,” added Cordish Companies chairman David Cordish. “Cordish is delighted to be partnering with GLPI on this range of transactions, which align two recognized leaders in their respective industries.
“We look forward to continue delivering quality entertainment experiences in the markets we serve now, and collaborating and partnering with GLPI on opportunities to grow the Live! brand in the future.”