Gaming and Leisure Properties Tuesday announced that it has completed the previously announced $395 million acquisition of the land and real estate assets of Bally’s Kansas City Casino and Bally’s Shreveport Casino & Hotel from Bally’s. The two properties have been put into a new Bally’s master lease that is cross defaulted with the company’s existing Bally’s master lease, with initial annual cash rent of $32.2 million representing an 8.2% initial cash capitalization rate.
Total rent coverage on the Kansas City and Shreveport assets is expected to be 2.2x in the first year of ownership.
“We are pleased to announce the completion of our sale-leaseback transactions for Bally’s properties in Kansas City and Shreveport, which we expect will be accretive to our financial results,” said GLPI Chairman and CEO Peter Carlino in a statement. “This transaction was executed at an attractive cap rate and expands our partnership with Bally’s, while strengthening our portfolio which has now grown to include 67 high-quality regional gaming assets.”
Bally’s Kansas City Casino, on the Missouri River in Kansas City, Missouri, recently completed a $70 million renovation and expansion. The property features a 42,000 square foot casino with more than 900 slot machines, 24 table games and more than 50 video poker and keno terminals. It also offers three restaurants including Chickie’s & Pete’s full-service sports bar, nearly 3,000 square feet of event space, and several entertainment lounges.
Bally’s Shreveport Casino & Hotel is along the Red River in Downtown Shreveport, Louisiana. The property features a 30,000 square foot casino with over 950 slot machines, more than 50 table games, a poker room, and a Bally Bet Sportsbook. It has a 400-room hotel with full-service spa, three on-site restaurants including a steakhouse and noodle bar, event spaces, live entertainment and two on-site nightclubs.
