Gaming and Leisure Properties Inc GLPI has acquired the land associated with the Hard Rock Casino development project in Rockford, Illinois, from an affiliate of 815 Entertainment, LLC for $100.0 million.
The Hard Rock Casino has 177,000 sq. ft. featuring an approximate 60,000 sq. ft. gaming floor, initially with 1,250 slot machines, 50 table games, and in-person and online sportsbooks in the U.S.'s second largest sports wagering market.
Along with the land acquisition, GLPI entered into a ground lease with 815 Entertainment for a 99-year term.
The initial annual rent for the ground lease is $8.0 million, subject to fixed 2.0% annual escalation starting with the lease's first anniversary and for the entirety of the term.
In addition to the ground lease, the company has also committed to providing up to $150.0 million of development funding via a senior secured delayed draw term loan.
Any borrowings under the senior secured delayed draw term loan will be subject to an interest rate of 10.0%.
Gaming and Leisure Properties held $9.5 million in cash and equivalents as of June 30, 2023.
Price Action: GLPI shares closed higher by 0.80% at $46.42 on Tuesday.
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