Gaming and Leisure Properties (GLPI) has completed the purchase of the land and real estate assets of Live! Casino and Hotel Maryland from The Cordish Companies for a total of $1.14bn.
In addition to the land and real estate assets, the deal includes a partnership on future Cordish casino developments, as well as potential financing partnerships between GLPI and Cordish in other areas of Cordish’s portfolio of real estate and operating businesses.
GLPI funded the transaction by assuming a debt of almost $363m, which it intends to repay by the end of 2021, and issuing approximately $200m of operating partnership units.
While finishing the transaction, GLPI also entered into a single asset triple net lease with Cordish that will have Cordish continue its uninterrupted ownership, control and management of the operations of Live! Maryland.
As per the agreement, the lease has an annual cash rent of $75m for an initial term of 39 years, with a maximum term of 60 years.
Peter Carlino, Chairman and CEO of GLPI, commented: “The Cordish Companies is renowned for creating large-scale experiential real estate projects, casinos, hospitality and entertainment districts, and we believe its Live! brand and Live! Maryland together exemplifies their track record of developing and operating success.
“Further, our new lease with Cordish has strong rent coverage and is part of an accretive overall transaction that positions our company to continue to build value for shareholders via our industry-leading, high-quality tenant roster.
“We are excited to welcome Live! Maryland to the GLPI family and we look forward to working with their team to ensure the long-term success of the property.”
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