'Business as usual' after $1.8 billion transaction involving Westmoreland casino
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After more than a year in operation, the Live! Casino Pittsburgh property at Westmoreland Mall is changing hands.
In a $1.8 billion deal, Wyomissing-based Gaming and Leisure Properties in Berks County will acquire three properties owned by Baltimore-based The Cordish Cos., including Live! Casino & Hotel Maryland, Live! Casino & Hotel Philadelphia and Live! Casino Pittsburgh. The properties will be leased back by Cordish, which will continue to own gaming operations.
“We are excited to establish a relationship with The Cordish Cos., one of the country’s preeminent developers of large-scale experiential real estate projects, casino, hospitality and entertainment districts,” said Peter Carlino, chairman and CEO of Gaming Leisure Properties. “We have long admired Cordish for their creation of the highly successful Live! brand.”
The Cordish Cos. first moved into Western Pennsylvania last November with the opening of Live! Casino at Hempfield’s Westmoreland Mall. The $150 million casino opened at the former Bon-Ton store offering 30 table games, 150 slot machines and restaurant and entertainment facilities.
Casino officials directed questions to The Cordish Cos., which provided a written statement from Chairman David Cordish.
“We will continue to own and operate all three of our Live! Casinos, unchanged,” Cordish said. “It’s really business as usual for Live! Casinos, its team members and customers, with a new partner that provides us the capability to grow even further and faster. As a multi-generational, family-owned and operated business, GLPI is an ideal partner for us to continue that tradition.”
Tenants of Gaming and Leisure Properties, a subsidiary of Penn National Gaming, include Hollywood Casino at the Meadows in Washington County and Hollywood Casino at Penn National Race Course in Dauphin County.
Financing for the three properties will be comprised of qualified debt assumption, which will be satisfied by Gaming and Leisure Properties, cash and a $323 million stock offering to align both groups for future collaborations and partnerships. The transaction will create a binding partnership on future Cordish casino developments and financing partnerships.
“A crucial aspect of our transaction was Cordish’s continued commitment to operating with the same team, approach and standard of excellence that has brought their casinos so much success,” Carlino said. “These new leases are expected to have strong rent coverage at an accretive cap rate while further expanding and diversifying our portfolio.”
The Maryland transaction is expected to close at the end of the year. The Pennsylvania transactions could close in early 2022.
Initial leases will run 39 years, with a maximum term of 60 years including renewal options.
“We look forward to continue delivering quality entertainment experiences in the markets we serve now, and collaborating and partnering with GLPI on opportunities to grow the Live! brand in the future,” Cordish said.
