Penn Leisure works out new leasing association with Gaming & Leisure

Gaming & Leisure Properties (NASDAQ:GLPI) introduced that it agreed to create a brand new grasp lease with Penn Leisure (NASDAQ:PENN) for seven present properties.

The businesses have additionally agreed to a funding mechanism to assist PENN’s pursuit of relocation and growth alternatives at a number of of the properties included within the new grasp lease.

The brand new grasp leasee will add Penn’s properties in Aurora and Joliet, Illinois; Columbus and Toledo, Ohio; and Henderson, Nevada. As well as, the prevailing leases for the Hollywood On line casino at The Meadows in Pennsylvania and Hollywood On line casino Perryville in Maryland will terminate and these properties shall be transferred into the brand new grasp lease. GLPI has agreed to fund as much as $225M for the relocation of PENN’s riverboat on line casino in Aurora at a 7.75% cap fee and to fund as much as $350M for the relocation of the Hollywood On line casino Joliet in addition to the development of resorts at Hollywood On line casino Columbus and a second resort tower at M Resort Spa On line casino at then present market charges.

For its half, GLPI acknowledged that the corporate is worked up to construction a brand new grasp lease with a long-term tenant that features a funding possibility to permit PENN to increase its legacy of progress by way of growth by pursuing enticing alternatives in Illinois, Ohio and Nevada.

The transaction is topic to customary regulatory approvals and is anticipated to be efficient January 1, 2023.