The double purchase formed part of a wider deal agreed in December last year, which also included the acquisition of the Live! Casino & Hotel Maryland, though this purchase is yet to complete.
GLPI funded the two acquisitions by assuming $423.0m in debt, which has already been repaid, and by issuing approximately $137.0m of operating partnership units, with the balance paid in cash on hand partly generated by the issuance of senior unsecured notes and common stock in December.
In addition to completing the double deal, GLPI entered a master lease with Cordish, under which Cordish will continue its uninterrupted ownership, control and management of the operations of Live! Philadelphia and Live! Pittsburgh.
The PA Live! Master Lease, which covers both venues, has an initial annual cash rent of $50.0m and an initial term of 39 years, with a maximum term of 60 years, inclusive of tenant renewal options. It also has fixed annual lease escalation of 1.75%, beginning in the lease’s third year.
Live! Philadelphia has over 510,000sq ft of gaming, hotel, dining and entertainment space, featuring 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 property also has a 208-room hotel, a six-room event centre featuring 15,000sq ft of meeting space and multiple dining and nightlife options.
Live! Pittsburgh is set over 100,000sq ft and features 750 slots and approximately 30 live-action table games plus a FanDuel sportsbook.
“We are delighted to add the Live! Pennsylvania properties to our portfolio and expand our presence in the attractive Pennsylvania market with truly world-class properties,” GLPI chairman and chief executive Peter Carlino said.
“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.”
Meanwhile, GLPI noted that it expects its planned acquisitions with Bally’s Corporation for properties located in Rock Island, Illinois and Black Hawk, Colorado are expected to close in the first half of 2022, while the Tropicana Las Vegas deal should close by the end of the year.