GLPI completes the acquisition of Cordish’s Maryland assets for $1.14 billion

GLPI completes the acquisition of Cordish’s Maryland assets for $1.14 billion

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

GLPI bolsters presence in Maryland 

Along with the aforementioned assets, the transaction includes cooperation with Cordish on future casino initiatives and prospective financing agreements between GLPI and Cordish in other sectors of the latter’s suite of real estate and operating enterprises.

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

Simultaneously with the transaction’s closure, the firm entered into a single asset triple net lease with Cordish, under which Cordish will continue to own, operate, and manage Live! Maryland’s operations indefinitely. The lease contains an initial yearly cash rent of $75 million, a period of 39 years with a maximum duration of 60 years, inclusive of tenant renewal options, and a set annual lease escalation of 1.75 percent beginning in the third year.

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

Moreover, the firm and Casino Queen entered into an updated and restated master lease covering both the Hollywood Casino Baton Rouge and the DraftKings at Casino Queen properties for a combined annual cash rent of roughly $21.4 million.

The business is on pace to close the previously announced acquisition of Live! Casino & Hotel Philadelphia and Live! Casino Pittsburgh in early 2022, subject to regulatory clearances and other standard closing circumstances.

Quotes from the Deal

“We are happy to add Live! Maryland to our portfolio, broaden our roster of premier operators, and gain more access to the fast rising Baltimore-Washington corridor via a truly world-class property,” said Peter Carlino, chairman and CEO of GLPI.

“The Cordish Companies is internationally famous for developing large-scale experiential real estate projects, casinos, hospitality, and entertainment districts, and we feel that their Live! brand and Live! Maryland combined embodies their development and operating success.

“In addition, our new lease with Cordish provides significant rent coverage and is part of an accretive overall deal that positions our Company to continue growing shareholder value through our industry-leading, high-quality tenant roster.”

“We’re thrilled to welcome Live! Maryland to the GLPI family and look forward to collaborating with their team to ensure the property’s long-term success.”

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About Lou De Aguila

Lou Ramon Aguila is a contributor for Golden Casino News. He has a degree in BSBA Legal Management with great interest in high-profile legal cases involving sports personalities. An ultimate sports junkie, he covers just about everything in the sporting world with an emphasis on the NBA, NFL, and MLB. In his past time, Lou loves to read manga, watch anime and critique pro-wrestling matches.