GLPI closes deal to acquire Bally’s properties in Tiverton and Biloxi for $635m
Gaming & Leisure Properties, Inc (GLPI) has officially acquired the land and real estate assets of Bally’s Tiverton Casino & Hotel in Tiverton, Rhode Island, and Bally's Hard Rock Hotel & Casino Biloxi in Biloxi, Mississippi in a $635m (£535m/€604m) leaseback deal.
The Tiverton deal was previously announced in June of 2022 and both were finalised on January 3, 2023.
The acquisition of Bally’s Tiverton Casino & Hotel and Bally’s Hard Rock Hotel & Casino mean that six properties are now included in the master lease between Bally’s and GLPI. Rent for the Master Lease will increase by $48.5 million per year under the deal.
Included in the $635m is $15m in the form of operating partnership units, representing an ownership stake in the partnership that now owns the properties. The deal was done as a tax-free capital contribution, and much of the proceeds will go to reduce Bally’s debt.
Bally’s will continue to own, run and operate the gaming facilities on the two casinos.
“We are pleased to have completed another transaction with GLPI,” Bally’s chief financial officer Bobby Lavan said. “This marks an important step for us, ensuring Bally’s is best positioned for continued growth”.
Subject to Bally’s Consent, GLPI also has the option to acquire Bally’s Twin River Casino Resort in Lincoln, RI before December 31, 2024 in a $771m (£650m/€735m) deal.