GLPI completes $1.14bn transaction of Cordish’s Maryland assets

The Gaming and Leisure Properties has completed the transaction of The Cordish Companies land and real estate assets of Live! Casino & Hotel Maryland for a total consideration of $1.14bn. 

Along with the aforementioned assets, the acquisition also includes a partnership on future Cordish casino developments, as well as potential financing alliances between GLPI and Cordish in other areas of the latter’s suite of real estate and operating businesses. 

Peter Carlino, chairman and CEO of GLPI, commented: “We are delighted to add Live! Maryland to our portfolio, further diversify our roster of leading operators, and gain additional access to the rapidly growing Baltimore-Washington corridor via a truly world-class property. 

“The Cordish Companies is world renowned for creating large-scale experiential real estate projects, casinos, hospitality and entertainment districts and we believe their Live! brand and their Live! Maryland together exemplify their track record of development 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 through 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.”

GLPI funded the transaction by assuming approximately $363m in debt, which the company intends to repay by the end of 2021, and issuing approximately $200m of operating partnership units (4.35 million total units), with the balance paid out of cash on hand, which was in part generated by its recent issuance of senior unsecured notes and common stock.

Simultaneous with the closing of the transaction, the firm entered into a single asset triple net lease with Cordish, pursuant to which Cordish will continue its uninterrupted ownership, control and management of the operations of Live! Maryland. 

The lease has an initial annual cash rent of $75m and an initial term of 39 years with a maximum term of 60 years, inclusive of tenant renewal options, as well as a fixed annual lease escalation of 1.75 per cent beginning in the lease’s third year.

Moreover, GLPI also completed on December 17, 2021, the previously announced sale of the operations of Hollywood Casino Baton Rouge to Casino Queen Holding Company (for total cash consideration of $28.2m. 

Furthermore, alongside the closing of the transaction, the company and Casino Queen entered into an amended and restated master lease that includes both Hollywood Casino Baton Rouge and the DraftKings at Casino Queen property for combined annual cash rent of approximately $21.4m. 

The company remains on track to complete its previously announced acquisition of the real property assets of Live! Casino & Hotel Philadelphia and Live! Casino Pittsburgh in early 2022, subject to receipt of required regulatory approvals and other customary closing conditions.