WYOMISSING, PA — Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) has successfully finalized its $250 million acquisition of land from Blue Owl Capital, paving the way for Bally’s Corporation (NYSE: BALY) to construct its permanent Chicago Casino. This acquisition is part of GLPI’s wider agreement with Bally’s, initially announced in July, and represents a strategic move to enhance GLPI’s portfolio and financial performance.
With the land purchase complete, GLPI will assume the existing lease from Blue Owl Capital, transitioning it to an affiliate of GLPI. The lease terms include an annual rent of $20 million, yielding an initial cash rate of 8.0%. GLPI’s total investment in the Chicago casino—including all real estate and improvements—amounts to $1.19 billion, with a blended initial cash investment yield of 8.4%. The stabilized rent coverage is projected to range between 2.0x and 2.4x, reflecting a balanced approach to managing financial risk and reward.
Peter Carlino, Chairman and CEO of GLPI, remarked on the acquisition’s significance, stating, “The completion of the Chicago land purchase is a significant milestone toward the development of Bally’s Chicago, which promises to be a must-visit destination casino resort property in the heart of Chicago.” He emphasized the accretive nature of the transactions, highlighting an 8.3% blended initial cash yield and conservative rent coverage, underlining GLPI’s robust financial strategy.
This acquisition not only strengthens GLPI’s partnership with Bally’s but also positions it to benefit from one of Chicago’s largest upcoming entertainment projects. As the development progresses, stakeholders and the local community can anticipate a world-class entertainment hub that contributes to the vibrant landscape of Chicago’s third-largest metropolitan area.
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