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Gaming & Leisure Facilities announced that it had reached an agreement with Penn Leisure to develop a new master lease for seven of its existing properties. The parties have also agreed on a finance mechanism to support PENN’s pursuit of relocation and expansion opportunities at some of the locations covered under the new master lease.
The brand-new master lessee will also include Henderson, Nevada; Columbus, Ohio; Toledo, Ohio; and the properties owned by Penn in Aurora and Joliet, Illinois. Additionally, the current leases for Hollywood Casino Perryville in Maryland and Hollywood Casino at The Meadows in Pennsylvania will expire, and ownership of these locations will be transferred to the new master lease.
GLPI has agreed to contribute up to $225 million toward the relocation of PENN’s riverboat casino in Aurora at a cap fee of 7.75% and up to $350 million toward the relocation of the Hollywood Casino in Joliet, as well as toward the construction of resorts at the Hollywood Casino in Columbus and a second resort tower at the M Resort Spa Casino, at then-current market rates. As the company seeks appealing options in Illinois, Ohio, and Nevada, GLPI builds a brand-new lease with long-term tenants that offer financing prospects to enable PENN to extend its tradition of development through growth.