Penn National Gaming and Vici properties have completed the previously announced $376m acquisition of Louisiana Margaritaville Resort Casino.
Penn has also entered into a triple net lease agreement with the real estate investment trust, which has approximation rent of $23.2m per year and runs for an initial 15 year period, also containing four-five renewal options.
John Payne, president and Chief Operating officer of Vici properties, said: “Closing the Margaritaville acquistion, in partnership with Penn national, is a meaningful achievement coming within 15 months of the company’s formation.
” 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.”
“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 of customers, employees and the community at large.”
“This acquisition is in line with our efforts to enhance shareholders value as it is immediately accretive to our free cash flow, further diversifies our revenues and operating base and offers a well defined path to the realisation of synergies that are expected to lower the purchase multiple.”