Penn National’s real estate investment trust arm, Gaming and Leisure Properties, Monday announced that it has entered into a definitive agreement to acquire the real estate assets of six casino properties from Tropicana Entertainment for $1.21 billion, exclusive of taxes and transaction fees of approximately $40.0 million.
When the proposed deal closes, Eldorado Resorts, Inc., for a purchase price of about $600 million, will then acquire the operating assets of these properties and lease the real estate from Gaming and Leisure Properties.
Billionaire investor Carl Icahn owns the majority Tropicana of Entertainment through Icahn Enterprises
Assets to be acquired are Tropicana Atlantic City, Tropicana Evansville, Lumiere Place, Tropicana Laughlin, Trop Casino Greenville and The Belle of Baton Rouge. The combined properties include 350,000 casino square feet, 7,416 slot machines, 237 table games and 4,993 hotel rooms. The sale does not include the Tropicana Aruba Resort and Casino, which will be sold separately.
The transaction is subject to regulatory approval and is expected to close by the end of 2018.
Chief Executive Officer Peter M. Carlino said in announcing the deal, “The acquisition of these assets demonstrates the company’s continued commitment to pursuing accretive growth opportunities. This transaction meaningfully grows our annual rent and diversifies our tenant base, while increasing our geographic footprint. Eldorado is a highly respected operator of a large and diversified portfolio of regional gaming assets with a strong track record of successful acquisitions. We are excited to work with them to successfully complete this acquisition and look forward to additional opportunities to expand our relationship in the future.”
In 2015, Penn National acquired the Tropicana Las Vegas Casino Hotel Resort on the Las Vegas Strip for a reported $360 million.