Gaming and Leisure Properties (GLPI) has announced the purchase of three casino resorts in South Dakota and Nevada for $105 million (£83 million/€96.8 million).
GLPI bought the real estate assets of Baldini’s Casino in Nevada, and the Silverado Franklin Hotel & Gaming Complex along with the Deadwood Mountain Grand (DMG) casino in South Dakota.
The Silverado is one of the largest gaming facilities in South Dakota, with 245 slot machines and a 68-room hotel. A hotel renovation is planned to start in 2024. Baldini’s covers nine acres and has about 492 slot machines. The DMG features a 93-suite hotel and a 13,500 square foot event center.
GLPI chairman and CEO Peter Carlino is excited about the future of the company's new casino resorts. The company believes these purchases will quickly boost its financial performance.
“With our acquisition of the Silverado, DMG, and Baldini’s properties, we are happy to further diversify our property portfolio,” Carlino said.
GLPI has agreed to a tenant relationship with Strategic Gaming Management. As part of the agreement, GLPI has entered into two triple-net lease agreements with Strategic, which will initially last for 25 years, with the option for two 10-year renewal periods.
“With the initial transaction and our right of first refusal on growth opportunities, we look forward to the start of a long-term mutually beneficial relationship with [Strategic chief executive] Grant [Lincoln] and Strategic,” Carlino continued.
“Our initiatives to expand our portfolio remain active in the current environment as our reputation as the gaming landlord of choice is further strengthened and reinforced by this transaction.”
Lincoln added: “We are pleased to begin our partnership with GLPI. We look forward to collaborating with GLPI to prudently grow our operations over the coming years.”