Gaming and Leisure Properties Inc. (GLPI), a company that acquires, finances, and owns real estate property to be leased to gaming operators, recently reached an agreement with Penn National Gaming.
Under the agreement, GLPI will acquire the Tropicana Las Vegas hotel and casino’s real estate assets for Penn National’s Morgantown development for an aggregate noncash rent payment of $337.5 million. Penn National will continue to operate the hotel and casino.
The lease for the Morgantown land initially will generate $3 million in rent.
Penn National has agreed to early renewal for both master leases with GLPI beyond the current terms by five years and will grant GLPI downside protection for any future competitive impact that Penn National’s new developments in Pennsylvania could have on the GLPI facilities.
Penn National will have the option to acquire the operations of Hollywood Casino Perryville.
“For GLPI, we are receiving attractive real estate value which represents a prudent and thoughtful approach toward ensuring that our shareholders are made economically whole while positioning Penn National with a healthier runway to navigate the impacts of COVID-19 over the long term,” GLPI Chairman and CEO Peter Carlino said.
The deal is expected to close by April 30, subject to the negotiation of definitive agreements and regulatory approvals.