Gaming and Leisure strikes big deal with Tropicana

Gaming and Leisure Properties, a Pennsylvania-based real estate investment company dealing mainly in casino properties, has reached an agreement acquire the real estate assets of six casino properties from Tropicana Entertainment, a Nevada-based casino-operating company. The deal is estimated to be worth $1.21bn (€977.3m).

The six properties covered in the agreement are Tropicana Atlantic City, Tropicana Evansville, Lumiere Place, Tropicana Laughlin, Trop Casino Greenville and The Belle of Baton Rouge.

The total properties that come under the deal are the following 350,000 casino square feet, 237 table games and 7416 slot machines.

The agreement is subject to further mandatory approvals. The deal is expected to go through by the end of this year. Once the approvals are obtained, Eldorado Resorts, a Nevada-based gaming company, would acquire the operating assets of the properties and lease real estate from the company via a new master leaser with an initial 15-year term and four five-year renewal periods.

Peter Carlino, chief executive of Gaming and Leisure, said: “The acquisition of these assets demonstrates the company’s continued commitment to pursuing accretive growth opportunities.”

“This transaction meaningfully grows our annual rent and diversifies our tenant base, while increasing our geographic footprint.”

“Eldorado is a highly respected operator of a large and diversified portfolio of regional gaming assets with a strong track record of successful acquisitions.”