Churchill Downs Integrated closed on the sale of almost 116 acres of land it owned in Florida on Friday, and the corporate mentioned the proceeds from the transaction will go to cowl acquisitions it introduced earlier this 12 months.
The Louisville-based gaming firm first introduced it might promote the acreage that’s adjoining to its Calder On line casino to Hyperlink Logistics for $291 million in November. That land had served as a thoroughbred racetrack for almost 50 years earlier than it was shut down in late 2020.
Final 12 months, Churchill Downs mentioned it deliberate to make use of the proceeds to accumulate alternative property as a part of a 1031 alternate. Underneath federal tax legal guidelines, corporations can keep away from paying capital good points taxes in the event that they use the proceeds from the sale of the property to accumulate or make investments in one other property.
In February, Churchill Downs introduced it might purchase most of Peninsula Pacific Leisure’s (P2E) gaming portfolio for $2.49 billion. That deal ought to shut by the tip of this 12 months.
On Friday, Churchill Downs mentioned it might use “sure proceeds of the sale” towards the P2E acquisition in addition to use it towards different “alternative properties” to qualify for a 1031 transaction.
Churchill’s Deal Making Extends Previous Calder, P2E
With the sale to Hyperlink Logistics now closed, Churchill Downs nonetheless owns about 54 acres on the Calder On line casino, positioned in Miami Gardens. The corporate mentioned it might contemplate promoting one other 15 to twenty acres of that parcel which can be appropriate for retail companies.
The Calder and P2E transactions are simply two of a number of strikes Churchill Downs has introduced previously 12 months. Probably the most notable was the sale of Arlington Worldwide Racecourse final September. The Chicago Bears have agreed to purchase the 326-acre racetrack within the Windy Metropolis suburb of Arlington Heights for $197.2 million, and the crew plans to make use of the location for a brand new stadium. That deal could not shut nevertheless till early subsequent 12 months.
Churchill Downs additionally has introduced a number of upgrades and deliberate renovations to its namesake monitor in Louisville because it plans for the one hundred and fiftieth Kentucky Derby in lower than two years. Chief amongst them is a $200 deliberate growth of the monitor paddock space that’s set to open for the milestone Derby. Development on that work will begin after the spring meet ends subsequent month.
The corporate additionally opened a brand new $44.5 million membership part this 12 months. As well as, a virtually $90 million premium seat mission alongside the monitor’s first flip will open subsequent 12 months.
Additionally in Louisville, Churchill Downs is increasing Derby Metropolis Gaming, its historic horse racing (HHR) parlor. The $76 million mission will add 135,000 sq. toes to the ability positioned on the outdated Louisville Downs harness monitor. It additionally will enhance the gaming ground by 200 machines by later this 12 months. The mission additionally features a 123-room lodge that can open subsequent spring.
New Initiatives Additionally in Churchill’s Pipeline
Churchill Downs isn’t simply shopping for and promoting. They’re additionally increasing organically.
The corporate plans to construct one other HHR parlor, this one in downtown Louisville, at a price of $80 million. Churchill officers anticipate that website to compete for vacationers who at present enterprise to play on the Caesars Southern Indiana on line casino in Elizabeth, Ind.
And on Tuesday, firm leaders shall be in Indiana to rejoice the groundbreaking for the Queen of Terre Haute On line casino within the west central Indiana metropolis. The corporate gained the license for the state’s thirteenth business on line casino final November.
Development on the $260 million mission is anticipated to take two years. When completed, the on line casino will maintain as much as 1,000 slot machines and 50 desk video games. Different facilities embrace a 125-room lodge.