Gaming and Leisure Company Acquires Hard Rock Casino Land for $100M

Date: 2023-08-30 Author: Kirill Zagoruyko Categories: CASINO
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The $100.0 million acquisition is reportedly complemented by a land lease agreement between GLPI and 815 Entertainment for a period of 99 years.

Complex acquisition deal
According to GLPI, the land lease includes an initial annual lease of $8.0 million, with the option to adjust the annual rate to 2.0% after the first year of the lease, which will remain fixed for the duration of the agreement. In addition, the land lease agreement assumes that GLPI will provide $150 million in development funding through a separate deferred loan transaction, reportedly at 10% interest, payable upon the opening of Rockford's Hard Rock Casino in September 2024. , as expected . .

In addition to the land acquisition and lease agreements, GLPI provided for a right of first refusal in respect of any improvements to the casino buildings, if a decision was made to sell them after they were completed.

$358 million casino development project
The land associated with the Hard Rock Casino is primarily located near Interstate 90 in Rockford, Illinois, covering approximately 177,000 sq. The casino is currently under construction and will have a 60,000 sq. feet with 1250 slot machines. , 50 table games, as well as retail and online sports betting stores. The Hard Rock Casino Rockford development project is valued at $358 million, with about $120 million funded to date, according to GLPI.

Peter Carlino, Chairman and CEO of GLPI, reportedly commented: “Our agreements with 815 Entertainment will allow GLPI to expand its footprint with a new land lease, a new tenant and a commitment to provide potential funding. We believe this is an attractive land lease deal for our shareholders, as the good initial results for the 815 Entertainment temporary facility demonstrate the strength of the location and the depth of the market."

Carlino added: “The Hard Rock brand is known worldwide and will support and strengthen the new casino's position as a tourist and entertainment hub. Hard Rock is a property manager and investor in 815 Entertainment, bringing its world-class management team to the project."

$250 million available to seller
According to the CEO, the structure of the overall financial solution allows 815 Entertainment to set aside $250 million to further invest in the project and establish joint ventures with GLPI. John Lucas, Chief Operating Officer of Hard Rock International, reportedly said, “Hard Rock's incredible financial strength and trajectory is only enhanced by great partners like GLPI and 815 Entertainment. We look forward to opening another world-class entertainment complex with Hard Rock Casino Rockford.”
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