• GLPI is paying $27 million for the land, extending financing of $440 million
• The casino is located in Petersburg, Va. and will be operated by Cordish and Bruce Smith Enterprise

Gaming and Leisure Properties (NASDAQ: GLPI) said today it is acquiring the real estate of the Live! Casino & Hotel Virginia in Petersburg and providing financing for the project in a deal with a total price tag of $467 million.

A conceptual rendering of the exterior of Live! Casino & Hotel Virginia in Petersburg. GLPI is buying the real estate for $27 million and providing $440 million in financing. (Image: The Cordish Companies)

The real estate investment trust (REIT) is paying $27 million for the property while providing $440 million in “hard cost funding” at a cap rate of 8%. The $600 million gaming venue, which is currently under construction, will be operated by Baltimore-based Cordish Companies and Bruce Smith Enterprise. Gaming and Leisure said the deal will be accretive to its operating results.

Live! Virginia is located just off I-95, less than 25 miles south of Richmond, VA. The approximately $600 million project will sit within a large 98-acre site and serve as the centerpiece of a broader $1.4 billion planned development, expected to include additional hotels, retail, dining, entertainment, and residential features,” according to a statement issued by the REIT.

The permanent version of the casino hotel will open in 2027 and will be home to an 80,000-square foot casino, 70,000 square feet of convention space, 200 hotel rooms, and 10 eateries.

Cordish, GLPI Expanding Relationship

The deal involving Live! Casino & Hotel Virginia in Petersburg expands the partnership between Pennsylvania-based GLPI and closely held Cordish.

The Virginia gaming venue is the fourth operated by Cordish where the real estate will be owned by GLPI. The other three are located in Baltimore, Philadelphia, and Pittsburgh. Cordish also operates a gaming venue in Bossier City, La.

“During the construction phase, Cordish will pay rent on the GLPI funding, as drawn. After the first anniversary of the opening of the permanent casino project, rent will escalate at a rate of 1.75% per annum,” said the landlord in the press release.

GLPI Has Been Busy of Late

Within the gaming industry, there’s increasing chatter that asset-level trading is poised to perk up in the coming months and Gaming and Leisure Properties proves there’s credibility in that sentiment.

News of the purchase and financing of the Live! venue in Virginia marks the REIT’s second announced deal this month. On Oct. 1, the property owner announced a $183.75 million deal for the Sunland Park Racetrack & Casino in southern New Mexico.

In September, GLPI reached a $735 million sale-leaseback deal with Bally’s in connection with the Twin River Lincoln Casino Resort in Lincoln, RI, but that transaction is currently being held by a group of the seller’s creditors. Still, GLPI has been busy and it’s sticking to its playbook of acquiring casino real estate in smaller, less volatile markets.

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