Gaming and Leisure Properties has entered into definitive agreements to acquire the real property assets of Dover Downs Hotel and Casino from Twin River Worldwide Holdings, and to re-acquire the real property assets of Tropicana Evansville from Caesars Entertainment.
Pursuant to the former, GLPI will acquire the assets for approximately $340m, while Twin River will secure the operating assets of the facility for $140m.
Twin River will also acquire rights to the sports betting and igaming skins associated with the operations, providing access to the growing Indiana market as part of the transaction.
Furthermore, GLPI will separately engage in a sale-leaseback transaction directly with Twin River for Dover Downs, and will acquire the real property for $144m.
Simultaneous with the closing of these transactions, GLPI will enter into a new triple-net master lease with Twin River for both assets with an initial term of 15 years, with four 5-year tenant renewal options. The initial annual cash rent will be $40m.
The transaction is expected to close in mid-2021, subject to receipt of required regulatory approvals and other customary closing conditions.
Peter Carlino, chairman and CEO of GLPI, commented, “We are excited to establish a formal relationship with Twin River as they represent another leading operator to add to GLPI’s growing platform.
“Our new master lease with Twin River will have strong rent coverage at an accretive cap rate and is the result of our team’s hard work to structure and complete a complex transaction that benefits both parties. These transactions further diversify our portfolio with the addition of a new operator and expands our footprint into Delaware.”
Tropicana Evansville has 79,000 square feet of enclosed space, including 45,000 square feet of casino floor, four dining venues, a race and sportsbook and back of house space.
The complex also includes 11,000 square feet of convention space adjacent to the casino, and a Riverfront Event Center located across the street, which includes 10,000 square feet of convention space.
“This transaction is consistent with our core strategy of acquiring strategic gaming assets at attractive valuations and, importantly, represents the company’s entry into a 10th state,” explained George Papanier, president and CEO.
“It also provides us with access to an attractive Indiana gaming market, in which we will look to significantly advance our mobile and online sports betting and igaming initiatives.
“We believe this property is a great fit for our portfolio. We are acquiring the operations at a value accretive multiple, while also enhancing our interactive offerings.”