Lease agreements and investments:
Upon acquisition, GLPI and Strategy Gaming Management will enter into two cross-default triple-net leases, each with two 10-year renewals over an initial 25-year period. GLPI will allocate $5 million to improve its capital, bringing the total investment to $110 million.
The new rent comes with an initial total annual rent of $9.2 million, including capital improvement funds, representing a market cap ratio of 8.4%. Rents go through a fixed 2% annual increase from year 3, with CPI-based annual increases starting at 2% or higher in year 11, or a CPI cap of 2.5.
Peter Carlino, chairman and CEO of GLPI, said, "With the acquisition of Silverado, DMG, and Baldini, we are further diversifying our portfolio while expanding our tenant list through our new relationship with Strategy, a dynamic and growing game operator. With the addition of Strategy's properties, GLPI's portfolio has grown to 65 properties in 20 states."
Strategic Perspective:
According to the source, Strategic Gaming Management CEO J. Grant Lincoln emphasized the strategic fit between the two companies, saying, "Given their unique approach, emphasis on partnerships, and experience as a game operator as we explore options for sale-leaseback partners, GLPI has risen above other companies." Lincoln emphasized Strategic's commitment to profitability outcomes and its continued growth in the competitive gaming market.
Silverado Franklin, South Dakota's pioneering gaming property since its opening in 1990, boasts 245 slots, 16 table games, two restaurants, four bars and 68 rooms. Silverado Franklin continues its legacy of excellence with planned 2024 hotel renovations funded by GLPI's capital improvement proceeds.
Founded in 2011, the Deadwood Mountain Grand (DMG) features 141 slots, eight table games, two food and beverage venues, 208 parking spaces, sportsbooks, and an event center, all spread across an 11-acre site in Deadwood.
Baldini's, located in Sparks, Nevada, features 492 slot machines in a 43,000-square-foot casino that opened in 1988. The property also includes a sportsbook, restaurants, bars, ample parking, additional offices, and support space, contributing to its appeal as a local gaming destination.
Financial Advisory:
Citizen JMP Securities served as financial advisor to Gaming and Leisure Properties and CBRE Securities served as financial advisor to Strategy Gaming Management. 바카라사이트 순위
In summary, GLPI's acquisition of real estate properties at Silverado Franklin, Deadwood Mountain Grand and Baldini Casino underscores its strategic expansion and commitment to fostering mutually beneficial partnerships within the gaming industry. As GLPI continues to advance its portfolio and explore growth opportunities, the acquisition marks a significant milestone in its journey toward continued success and innovation.