This purchase was completed through three main channels; around $423m in repaid debt, alongside the issuing of approximately $137m of operating partnership units, and the remaining balance paid in cash that was generated in part by December’s issuance of unsecured notes and common stock.
Following the transaction, Gaming and Leisure Properties entered into a master lease which sees the continuation of ownership, control and management of Live! Philadelphia and Live! Pittsburgh by Cordish.
This lease sees an initial cash rent of $50m within a 39-year term. The maximum term reaches 60 years inclusive of any renewal options and a fixed annual lease escalation of 1.75%, which starts in the third year.
Live! Philadelphia sits in the centre of the Philadelphia Stadium District and covers an area of more than 510,000 square feet. Within can be found gaming, hotel and entertainment space, including more than 2,100 slot machines, 116 live-action table games, a 29 table poker room, 15 electronic table games and a FanDuel Sportsbook and lounge. The hotel hosts 208 rooms as well as a six-room event centre that can host up to 1,000 guests.
In contrast, Live! Pittsburgh is around 30 miles from downtown Pittsburgh. It covers 100,000 square feet and offers its customers 750 slot machines and around 30 live-action table games, as well as a FanDuel Sportsbook.
Peter Carlino, Gaming and Leisure Properties’ Chairman and CEO, commented: “The Cordish Companies is world-renowned for creating large-scale experiential real estate projects, casinos, hospitality and entertainment districts and we believe their Live! brand exemplifies their track record of development and operating success.
"Further, our PA Live! Master Lease with Cordish has strong rent coverage and is part of an accretive overall transaction that positions Gaming and Leisure Properties to continue to build value for shareholders through our industry-leading, high-quality tenant roster.
"We are excited to welcome the Live! Pennsylvania properties to the GLPI family and we look forward to working with their team to support the long-term success of the properties..”
