GLPI Acquires Three Live! Casino Properties for $1.81 Billion

Game and Leisure Properties Inc. (GLPI) has reached an agreement to purchase the real estate holdings of three Live! Casino locations owned by Cordish Companies for a sum of $1.81 billion.

GLPI will rent the properties – Live! Casino & Hotel Maryland, Live! Casino & Hotel Philadelphia, and Live! Casino Pittsburgh – back to Cordish, who will continue to manage their operations.

The transaction for the Maryland property is anticipated to be finalized by the end of the current year, while the Philadelphia and Pittsburgh locations are projected to close in the early months of 2022.

The $1.81 billion purchase price encompasses an undisclosed amount of cash, GLPI assuming existing debt on the properties held by Cordish, and $323 million in newly issued operating partnership units – shares specifically allocated to the partnership between GLPI and Cordish.

The lease agreement spans an initial period of 39 years with a potential extension to 60 years, accompanied by an annual rent of $125 million, subject to an annual increase of 1.75%.

This deal encompasses not just real estate holdings, but also a future “combined partnership” with the Cordish casino development project, as well as possible funding collaborations between GLPI and Cordish in other aspects of Cordish’s real estate and operational business.

Peter Carlino, President and Chief Executive Officer of GLPI, stated, “We are thrilled to collaborate with Cordish, one of the nation’s foremost developers of large-scale experiential real estate ventures, casinos, hotels, and entertainment districts. We have long respected Cordish’s creation of the highly successful ‘Live!’ brand in these entertainment, gaming, and hospitality districts.

“Beyond the real estate transaction for these three properties, we are enthusiastic to partner with Cordish to utilize the financial and real estate development strengths and resources of both companies in a variety of strategic opportunities moving forward.”

“We have long admired GLPI’s groundbreaking structure and achievements as a public platform,” added David Cordish, President of Cordish Companies. “Cordish is excited to partner with GLPI on this series of transactions, which brings together two recognized leaders in their respective industries.

“We look forward to continuing to provide top-tier entertainment experiences in our current service markets, and collaborating with GLPI to expand the ‘Live!’ brand in the future.”

GLPI’s recent revenue was $298 million.

Cordish Enterprises announced earnings of $7 million for the third quarter of 2021, a decrease from the same period in the previous year.

To assist the company in reaching its expansion goals, Cordish hired Kathy Bedding as Executive Vice President and General Counsel and Susan Trout as Executive Vice President and Chief Marketing Officer earlier this year.

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