Cordish Companies announces sale of $1.81 billion casino real estate

Cordish Companies announces sale of $1.81 billion casino real estate

Cordish Companies sells $1.81 billion in casino real estate to GLPI

Cordish Companies unloads property to GLPI 

Gaming and Leisure Properties has entered into a strategic agreement under which the business would buy the real estate assets of three Cordish Companies Live! casino facilities for $1.81 billion.

The Cordish Companies is a multigenerational, family-owned business with global reach and deep expertise. The Cordish Companies is widely recognized as the preeminent international developer of large-scale urban revitalization projects and entertainment districts, frequently dubbed “Live!” districts. 

Cordish has also established a strong presence as a developer and operator of gaming and hospitality projects and a market leader in pioneering a new standard for sports-anchored mixed-use initiatives.

The former will acquire the real estate assets of Live! Casino & Hotel Maryland, Live! Casino & Hotel Philadelphia, and Live! Casino Pittsburgh, as well as any applicable long-term ground leases. Cordish will immediately lease back all premises and will continue to own, control, and manage all gaming operations at the locations in an uninterrupted manner. 

The acquisition encompasses the existing real estate assets and binding cooperation on future casino initiatives and potential finance arrangements between the two parties in other areas of Cordish’s real estate and operating enterprises.

Maryland’s transaction is scheduled to close by the end of the year, with Pennsylvania’s agreements likely to close in the early stages of 2022, subject to regulatory clearances, finance, and other standard closing conditions. GLPI anticipates funding the total cash consideration payable at the closings through cash on hand, borrowings under its revolving credit facility, and/or further financing arrangements, which are expected to include debt and equity securities issuances, or a mix of the two.

Additionally, the partnership provides GLPI with a right of the first offer and first refusal on any sale-leaseback or similar transaction that Cordish pursues, in whole or in part, in connection with a specific property in the firm’s Live! Entertainment District. Moreover, for seven years following the conclusion of the Pennsylvania assets sale, GLPI will co-invest with Cordish in any new gaming development project, barring those involving currently held properties or existing gaming licensed facilities. GLPI will invest in 20% of Cordish’s equity for the course of a project’s life.

Quotes from the Press Release

“We have long respected GLPI’s pioneering structure and accomplishments as a public platform,” David Cordish, chairman of The Cordish Companies, noted.

“Cordish is happy to be cooperating with GLPI on this series of transactions, which bring together two recognized industry leaders. Live! is an iconic brand, and our unwavering devotion to our consumers, team members, and local communities will continue.

“We look forward to continuing to provide superior entertainment experiences in the markets we already serve, as well as collaborating and partnering with GLPI to expand the Live! brand in the future.

“Our decision to receive a major percentage of our consideration in GLPI OP units demonstrates our appreciation for GLPI’s underlying value and excellence as a company, as well as the synergies we envision between the two.”

“We are excited to create a collaboration with The Cordish Companies, one of the country’s top developers of large-scale experiential real estate projects, casinos, hospitality, and entertainment districts,” said Peter Carlino, chair and CEO of GLPI.

“We have long admired Cordish for developing the extremely successful ‘Live!’ brand in these entertainment, gambling, and hotel sectors. A critical component of our transaction was Cordish’s continued commitment to managing their casinos with the same personnel, approach, and standard of excellence that has fueled their success.

“These new leases are projected to provide significant rent coverage at an accretive cap rate, further diversifying and growing our portfolio, and demonstrating our commitment to building an industry-leading, high-quality tenant roster.

“In addition to the three buildings, we are delighted to collaborate with Cordish on a variety of future strategic initiatives that will harness both firms’ financial and real estate development skills and resources.

“The OP unit element of the transaction consideration aligns our interests with our constituents’ goal of creating new value.”

About Lou De Aguila

Lou Aguila is a news and feature writer for Golden Casino News. For over a decade, Lou has published news and featured articles for some of the most reputable sports betting and online casino sites in the world, including BetNow.UK, VegasOdds, and BWin. Apart from being a hardcore live casino punter, he also covers sports stories in North American leagues from time to time.