WYOMISSING, Pa. - Gaming and Leisure (NASDAQ:GLPI) Properties, Inc. (NASDAQ:GLPI), a real estate investment trust specializing in casino properties, has announced a funding agreement to facilitate the relocation and renovation of the Belle of Baton Rouge casino in Louisiana. The project, managed by the tenant, The Queen Casino and Entertainment Inc., is backed by an investment of up to $111 million from GLPI and is anticipated to be completed by September 2025.
The Belle, currently a riverboat casino, will transition to a landside operation, with GLPI owning the new facility. While the casino will remain operational during the construction period, there will be a temporary closure when gaming equipment is transferred to the new location. The total costs for the project are expected to surpass $141 million.
As part of the agreement, Queen Casino & Entertainment Inc. will pay an increased rental yield of 9% on the development funding, starting one year after the initial disbursement of funds, which took place on May 30, 2024. The Belle is included in a master lease that also covers other properties managed by Queen Casino & Entertainment Inc., such as Draft Kings at Casino Queen in East St. Louis, IL, and Casino Queen Marquette in Marquette, IA.
Peter Carlino, Chairman and CEO of GLPI, expressed confidence in the partnership's ability to replicate the success of a previous landside move at The Queen Baton Rouge. The company views this investment as a step to reinforce its position as a preferred gaming landlord. Terry Downey, CEO of Queen Casino & Entertainment Inc., also conveyed optimism, citing the operational improvements and customer satisfaction achieved since the reopening of The Queen.
This project is part of GLPI's business strategy, which involves acquiring and financing real estate for gaming operators under triple-net lease arrangements. The Queen Casino & Entertainment Inc. has a history in gaming that began with DraftKings (NASDAQ:DKNG) at Casino Queen in 1993 and has since expanded to other locations.
The press release includes forward-looking statements regarding the expected benefits of the transaction to GLPI's shareholders. However, these statements are subject to various risks, uncertainties, and assumptions, including the ability to complete the proposed transactions and the impact of inflation and other economic factors.
The information in this article is based on a press release statement from Gaming and Leisure Properties, Inc.
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