Gaming and Leisure Properties has entered into definitive agreements to purchase from Twin River Worldwide Holdings the real estate assets of Dover Downs Hotel and Casino, and to re-acquire from Caesars Entertainment the real estate assets of Dover Downs Hotel and Casino.
GLPI will purchase the assets for around $340 m pursuant to the former, while Twin River will protect the facility’s operating assets for $140 m.
Twin River will also obtain rights to the operations-related sports betting and igaming skins, offering access as part of the deal to the growing Indiana market.
In addition, GLPI will engage directly with Twin River for Dover Downs in a sale-leaseback deal separately, and will purchase the real estate for $144 m.
GLPI will enter into a new triple-net master lease with Twin River for both properties for an initial period of 15 years, for four five-year tenant renewal options, concurrently with the closing of these transactions. There will be an initial annual cash rent of $40 m.
It is estimated that the transaction will close in mid-2021, subject to the requisite regulatory approvals and other customary closing conditions being issued.
GLPI’s Chairman and CEO, Peter Carlino, commented: “We are excited to establish a formal relationship with Twin River as they represent another leading operator to add to GLPI’s growing platform.
“Our new master lease with Twin River will have strong rent coverage at an accretive cap rate and is the result of our team’s hard work to structure and complete a complex transaction that benefits both parties. These transactions further diversify our portfolio with the addition of a new operator and expands our footprint into Delaware.”
There are 79,000 square feet of enclosed space in Tropicana Evansville, including 45,000 square feet of casino floor, four dining locations, a race and sportsbook, and back of house space.
The complex also contains 11,000 square feet of convention space adjacent to the casino, and an across-the-street Riverfront Event Center featuring 10,000 square feet of convention space.
George Papanier, president and CEO said: “This transaction is consistent with our core strategy of acquiring strategic gaming assets at attractive valuations and, importantly, represents the company’s entry into a 10th state.
“It also provides us with access to an attractive Indiana gaming market, in which we will look to significantly advance our mobile and online sports betting and igaming initiatives.
“We believe this property is a great fit for our portfolio. We are acquiring the operations at a value accretive multiple, while also enhancing our interactive offerings.”