Caesars Entertainment and real estate investment trust Vici Properties have announced a definitive agreement to sell the operations of Caesars Southern Indiana to the Eastern Band of Cherokee Indians for $250m.
In addition, at the closing of the transaction, EBCI will enter into a new lease with year one annual rent payments of $32.5m with Vici Properties, who maintains ownership of the real estate of the property.
As a result of this transaction, Caesars annual payments to Vici Properties under the regional master lease will decline by $32.5m upon closing.
John Payne, president and COO of Vici Properties, said of the agreement: “This transaction provides additional tenant diversification and continues to build Vici’s embedded growth pipeline while allowing Caesars to further their strategic objectives in Indiana.
“After only three years of real estate invest management, Vici has the most tenants of any gaming REIT. We’re thrilled to welcome EBCI as our sixth gaming tenant and look forward to a long partnership as they expand into commercial gaming.”
Additionally, effective as of the closing of the transaction, Caesars and the EBCI will extend their existing relationship by entering into a long-term agreement for the continued use of the Caesars brand and Caesars Rewards loyalty program at the property.
“The purchase of Caesars Southern Indiana operating company marks the beginning of an exciting new future for the Eastern Band of Cherokee Indians,” said Richard Sneed, principal chief of the EBCI.
“We are pleased to build upon our long-standing partnership with Caesars as we look to advance our interests in commercial gaming in the coming years.”
The transaction is expected to close in the third quarter of 2021 and is subject to regulatory approvals and other customary closing conditions.
“Expanding our relationship with the Eastern Band of Cherokee Indians is an exciting event for Caesars Entertainment,” added Tom Reeg, CEO of Caesars Entertainment.
“Since our partnership began back in 1996, we have admired their growth and the success of their properties. We look forward to increasing our relationship by extending the Caesars brand and Caesars Rewards loyalty program to them at Caesars Southern Indiana.”