The Eastern Band of Cherokee Indians has purchased Caesars Entertainment’s Southern Indiana operations for about $250 million.
Caesars and EBCI will also expand their existing connection by entering into a long-term arrangement for the continuing use of the Caesars brand and Caesars Rewards loyalty programme at Caesars Southern Indiana, which will take effect immediately.
Caesars’ annual base rent payments to Vici Properties under the regional master lease will be decreased by $32.5 million as a result of the agreement.
Tom Reeg, CEO of Caesars Entertainment said: “I want to thank the team members of Southern Indiana for all of their hard work and wish them continued success under their new leadership.”
Following its purchase, real estate investment trust Vici Properties entered into a triple-net leasing arrangement with EBCI Holdings, a subsidiary of EBCI.
The lease’s first total yearly rent is $32.5 million for a 15-year term, with four five-year tenant renewal options. Beginning in lease year two, rent will increase by 1.5 percent every year until lease year five, when it will increase by the greater of two percent or the consumer price index. Beginning in lease year six, rent will increase by the greater of two percent or the consumer price index.
Vici Properties, EBCI, and Caesars have also agreed to a right of first refusal for the former’s real estate linked with the development of a new casino resort in Danville, Virginia, as part of this deal.