RSS Feed

Tech Support

Gaming and Leisure Properties, Inc. announced the acquisition of land related to the Hard Rock Casino Rockford development project in Illinois for $100 million from an affiliate of 815 Entertainment, LLC. Upon the acquisition of the land, GLPI entered into a ground lease agreement with 815 Entertainment for a 99-year term. The initial annual rent for the ground lease is $800,000, with a fixed annual rent of 2.0% based on the initial lease commencement and the entire lease period.

In addition to ground leases, GLPI has committed to providing up to $150 million in development funding through senior mortgage-delayed-term loans subject to regulatory review. All loans under Senior Mortgage Delayed Term Loans are subject to an interest rate of 10.0%. The maturity loan has a withdrawal period of up to one year and an outstanding period of up to six years. Rockford loans are expected to begin in September 2024, and ILockford is upfront with no hard penalty of 2024.

With regard to the aforementioned transactions, GLPI will receive a primary veto on building improvements at Hard Rock Casino in Rockford, Illinois, once the sale is completed. The Hard Rock Casino in Rockford, Illinois, located right next to Interstate 90 in Rockford, Illinois, sits at about 177,000 square feet, has an online game console on an approximately 60,000 square foot game floor, initially a 1,250 large sports table, and 50 online games.

Peter Carlino, Chairman and CEO of GLPI, said, "The deal with 815 Entertainment will allow GLPI to expand its presence by adding new ground leases, new tenants and potential funding commitments. I believe that the strong initial results from 815 Entertainment's temporary facilities are an attractive ground lease deal for shareholders as they show the strength and depth of the market. Hard Rock will solidify the rock brand's new position as a tourist destination and casino.