GLPI to fund landside move of Belle of Baton Rouge in Louisiana
4th June 2024 9:19 am GMTGaming and Leisure Properties (GLPI) has agreed to provide up to $111 million in funding for the landside move and hotel renovation of Belle of Baton Rouge in Baton Rouge, Louisiana.
GLPI has committed to provide funding to Queen Casino & Entertainment for the project, which is expected to be completed by September 2025.
Total project costs for the new on-land venue are expected to exceed $141 million, with the riverboat casino continuing to operate throughout the construction period, except while gaming equipment is being moved to the new facility.
GLPI will own the new facility, with Queen Casino & Entertainment paying an incremental rental yield of 9 per cent on the development funding beginning a year from the initial disbursement of funds, which occurred on 30 May.
“Building on the success of our landside move funding at The Queen Baton Rouge, we have agreed to provide funding for the hard costs related to Queen Casino & Entertainment Inc.‘s landside move at The Belle,” said GLPI chairman and CEO Peter Carlino. “Queen Casino & Entertainment has proven its ability to leverage a fresh, new product to grow the overall gaming market and we expect this project to follow a similar path.
“We remain active in our efforts to expand our portfolio in the current environment and believe that transactions such as this further our reputation as the gaming landlord of choice.”
Queen Casino & Entertainment CEO Terry Downey said: “We are extremely pleased with the Queen’s performance since its grand reopening in August 2023, thanks in large part to GLPI’s partnership. Their depth of expertise and project management through the entire process have enabled us to exceed our financial, operational, and customer focused goals at the Queen.
“As we now turn our attention to The Belle, we look forward to realizing similar operational upside from this latest move landside. In particular, the proven success at the Queen and the synergies made possible by our operating model between the Queen and The Belle set the stage for success. We appreciate GLPI’s continued partnership in the growth of our business and look forward to providing our players with another fully refreshed casino destination.”
Owned by Standard General, Queen Casino & Entertainment acquired Belle of Baton Rouge from Caesars Entertainment in 2022.
Shares in Gaming and Leisure Properties Inc. (NASDAQ:GLPI) closed 0.22 per cent higher at $45.00 per share in New York Monday.