Caesars Entertainment has closed the sale of Caesars Southern Indiana operations to the Eastern Band of Cherokee Indians for approximately $250m.
Furthermore, effective immediately, Caesars and 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 Caesars Southern Indiana.
In connection with the transaction, Caesars’ annual base rent payments to Vici Properties under the regional master lease will be reduced by $32.5m.
“I want to thank the team members of Southern Indiana for all of their hard work and wish them continued success under their new leadership,” said Tom Reeg, CEO of Caesars Entertainment.
Moreover, real estate investment trust Vici Properties has also entered into a triple-net lease agreement with EBCI Holdings, a subsidiary of EBCI, following its purchase.
Initial total annual rent under the lease is $32.5m on an initial term of 15 years, with four five-year tenant renewal options. Rent under the lease will escalate annually by 1.5 per cent beginning in lease year two through lease year five, and the greater of two per cent or the consumer price index beginning in lease year six.
In addition, as part of this transaction, Vici Properties, EBCI and Caesars have entered into a right of first refusal for the former’s real property associated with the development of a new casino resort in Danville, Virginia.