Gaming and Leisure Properties (GLPI) has entered into an agreement to acquire the real estate assets of Sunland Park Racetrack & Casino in southern New Mexico.
Marking its second property in New Mexico, GLPI will acquire the Sunland Park’s real estate assets for $183.75 million, at an initial 8.2 per cent cap rate.
The deal represents an expansion of its relationship with Strategic Gaming Management, an acquisitive operator of domestic casino assets, adding a fourth asset to its existing triple-net master lease agreement with GLPI.
With the inclusion into the Strategic Gaming Leases, annual rent on the lease will escalate at 2.0 per cent per annum.
“Through our acquisition of Sunland Park, we are again diversifying our property portfolio, while again supporting the growth strategy of an existing tenant, as we deepen our relationship with Strategic Gaming, a dynamic and growing gaming operator,” said GLPI chairman and CEO Peter Carlino. “This accretive transaction further strengthens GLPI’s reputation as the gaming landlord of choice.”
Opened in 1959, Sunland Park sits on approximately 157 acres and offers 738 slots and 12 electronic gaming tables across a 25,000 square foot gaming floor.
The property includes a 1-mile Thoroughbred and Quarter Horse racetrack with a 733-seat stadium, and also hosts a 600-person ballroom, a simulcast wagering area, and a 78-room third-party hotel.
Closing of the deal is expected to take place on 15 October, with the transaction expected to be immediately accretive to GLPI’s Adjusted Funds From Operations (AFFO) per share.
Strategic Gaming also operates three casinos in Nevada and South Dakota in collaboration with GLPI.
Shares in Gaming and Leisure Properties Inc (NASDAQ:GLPI) closed 1.14 per cent higher at $47.14 per share in New York Wednesday.