Gaming and Leisure Properties, Inc. announced the completion of its purchase of the Live! Casino Maryland from The Cordish Companies for $1.14 billion.
The deal doesn’t just involve the land and real estate assets of Live! Casino Maryland but also a partnership for future casino development projects with The Cordish Companies and potential financing partnerships between the two companies.
In a statement GLPI chairman and CEO Peter Carlino said:
“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.”
Single Asset Triple Net Lease
According to GLPI, the transaction was funded with the assumption of the existing $363 million debt of The Cordish Companies, the issuance of 4.35 million units of operating partnership units worth $200 million, and from cash generated via the company’s recent issuance of senior unsecured notes and common stock.
Aside from the purchase of Live! Maryland’s real estate assets, GLPI also entered into a ‘single asset triple net lease’ with The Cordish Companies that would ensure the uninterrupted ownership, control, and operations management of the Maryland gaming property.
The lease has a current annual value of $75 million and an initial term of 39 years and a maximum term of 60 years, inclusive of tenant renewal options and a fixed annual lease escalation of 1.75% which starts on the third year of the lease.
GLPI Also Poised to Acquire Live! Casino & Hotel Philadelphia and Live! Pittsburgh
Live! Maryland is located on a 36.4 acre land adjacent to the Arundel Mills Mall in Hanover. The casino has a total of 4,000 slot machines and electronic casino games plus 200 live table games including a poker room with 52 tables.
The property also has a retail sportsbook, a parking area for more than 7,000 vehicles in a six-storey parking garage, a 310-room hotel, state-of-the-art live entertainment venue, and restaurants like Bobby’s Burger Palace, The Cheesecake Factory, and The Prime Rib.
After completing the purchase of Live! Maryland, GLPI said that it is on track to complete the previously announced acquisition of the real estate assets of two more casino properties owned by The Cordish Companies: Live! Casino & Hotel Philadelphia and Live! Casino Pittsburgh. The transactions are expected to be completed early this year, subject to regulatory approvals and customary closing.