Bally’s Company is promoting the actual property property of its Rhode Island casinos for $1bn. [Image: Shutterstock.com]
A major transaction
Bally’s Company has revealed that it’s within the technique of promoting the actual property property of its two casinos in Rhode Island for $1bn. The corporate introduced the information on Tuesday after it signed a binding time period sheet with GLP Capital, which is the working partnership for the Gaming and Leisure Properties Included (GLPI) actual property funding belief (REIT).
Bally’s Tiverton On line casino & Resort and Bally’s Twin River Lincoln On line casino Resort
The 2 properties are Bally’s Tiverton On line casino & Resort and Bally’s Twin River Lincoln On line casino Resort. The related regulatory approvals shall be crucial earlier than the deal proceeds, with the Lincoln facet of the deal additionally being topic to lender consent.
Following the completion of the transaction, Bally’s will enter right into a lease again settlement with GLP Capital and proceed to personal, handle, and function all the casinos’ gaming operations.
An present relationship
Talking in regards to the choice to sell the real estate assets, Bally’s chief monetary officer Bobby Lavan mentioned that it’ll “present the Firm with vital, long-term liquidity, guaranteeing that Bally’s is finest positioned to proceed executing its capital and strategic plan.” The funds ensuing from the sale may even present capital for potential funding alternatives sooner or later.
There’s already an present grasp lease settlement in place between Bally’s and GLPI to cowl different properties. Following the cope with the Rhode Island casinos, incremental lease shall be $76.3m with 14 of the 15 years of the preliminary grasp lease contract time period remaining. Different Bally’s properties which might be already on the grasp lease with GLPI embody Bally’s Black Hawk Casinos, Bally’s Quad Cities On line casino, Bally’s Evansville On line casino & Resort, and Bally’s Dover On line casino Resort.
If there isn’t any progress made in getting the related third-party approvals and consent for the acquisition of the Lincoln actual property property, GLPI will as an alternative purchase the actual property property in Mississippi of the Laborious Rock Resort & On line casino Biloxi, one other Bally’s Company property.
Bally’s Company owns and operates 14 casinos in ten states. It additionally has a presence in quite a few on-line playing markets, together with sports activities betting by the Bally Guess model.
The worth of the deal involving the Biloxi and Tiverton casinos can be $635m and the whole lease for Bally’s can be $48.5m. There would additionally then be the choice for GLPI to subsequently purchase the Tiverton’s actual property property earlier than 2025 for $771m, with lease of $58.8m initially.