GLPI is Acquiring Three Cordish Casinos in $1.81bn Deal
GLPI is acquiring three casinos from The Cordish Companies in a deal worth $1.81bn. The initial leases carry a term of 39 years with a maximum term up to 60 years. Cordishes will pay a starting rent of $125m, which will rise annually by 1.75% beginning on the second anniversary of the lease.
GLPI is buying three Cordish casinos for $1.81bn. The deal includes a binding partnership between GLPI and Cordy for future casino developments. The Cordry Companies operates other gaming properties, including the Hard Rock Hotel & Casino Tampa and the Hardshine Hotel and Casino Hollywood.
GLPI is the first REIT in the US to focus on leasing assets to gaming operators. It currently has 50 gaming assets under its umbrella across 17 states. The majority of its revenue came through rental income, while the other $15.5m came from the only casino GLPI operates – the Hollywood Casino Baton Rouge. GLPI announced the public offering of 7.7 million shares of common stock on December 6. Part of the net proceeds from this offering will help to finance the three transactions with The Cordish Companies.