VICI Properties, the real estate investment trust spun off from Caesars Entertainment, announced the completion of its purchase of the land and real estate assets of Margaritaville Resort Casino in Bossier City, Louisiana for $261 million in cash. In addition, Penn National Gaming bought the operational assets of the property for $115 million in cash, bringing the total purchase price to $376 million. VICI funded the net purchase price with cash from its 2018 equity raising activities.
Penn National also entered a 15-year, triple-net lease agreement with VICI, with four 5-year renewal options. Penn National will pay annual rent of $23.2 million.
VICI President and Chief Operating Officer John Payne said, “Closing the Margaritaville acquisition in partnership with Penn National is a meaningful achievement coming within 15 months of the company’s formation. The transaction is our first step towards fulfilling our objective to diversify our tenant roster with best-in-class gaming operators. Having known and worked with senior leaders at Penn National, I look forward to VICI Properties building a long-term mutually productive partnership with this world class operator.”
Payne continued, “This transaction also enhances our presence in the Bossier/Shreveport market with the acquisition of the newest facility in the market. Since opening in 2013, the Margaritaville Resort Casino has consistently been one of the leaders in the region. We look forward to working in partnership with Penn National to continue providing a high-quality experience for customers, employees and the community at large.”
Margaritaville Resort Casino features a 26,500 square foot casino with 1,215 slot machines and 50 gaming tables, a 395-room hotel, 6 restaurants, a 1,000-seat theater and a 1,500-space parking lot.
VICI also recently completed, together with Caesars, the purchase of all land and real estate assets of Harrah’s Philadelphia in Chester, Pennsylvania, and has leased those back.
