Ballys is undertaking a calculated maneuver to liberate funds and propel its expansion ambitions. The firm has secured an agreement to divest the properties of its two Rhode Island gaming establishments – Twin River Lincoln Casino Resort and Tiverton Casino Hotel – to Gaming and Leisure Properties (GLPI) for a substantial $1 billion.
Rest assured, Ballys isn’t departing Rhode Island in the foreseeable future. They are promptly leasing back both venues and will maintain the gaming activities as before. This sale-leaseback tactic is entirely about financial strategizing.
Consider it this way: Bally’s obtains a billion dollars upfront, which they can allocate to other prospects. In exchange, they remit rent to GLPI, who now holds ownership of the real estate. It’s a mutually beneficial arrangement for both entities. This transaction also solidifies their existing collaboration, as GLPI already possesses several other Bally’s properties.
This action underscores Bally’s emphasis on deliberate expansion and flexibility within the constantly shifting gaming environment.
GLP is considering two alternative properties should their offer for the Bally’s gambling establishment in Lincoln, Rhode Island be unsuccessful. The firm is ready to purchase the Hard Rock Hotel & Casino situated in Biloxi, Mississippi and a separate gaming venue in Tiverton, Rhode Island for a total of $635 million. This secondary agreement also encompasses an annual lease fee of $48.5 million.
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