Caesars Completes Real Estate Assets Sale

Caesars Entertainment officially announced that it has successfully sold the real estate assets associated with Harrah’s Philadelphia. The buyer is VICI Properties…

…and they payed $82.5 million in cash to get a hold of Harrah’s Philadelphia which petitioned PGCB for sports betting just a couple of months ago.

This reflects a purchase price reduction for the value of certain lease modifications and other aspects of the transaction. The agreement between the two companies has been previously announced.

“The completion of this transaction with VICI provides Caesars with financial flexibility and reduces the volatility of our future rent payments, demonstrating our commitment to creating value for our shareholders while maintaining financial discipline,” said Mark Frissora, President and Chief Executive Officer of Caesars Entertainment.

Additional Details

Caesars leased Harrah’s Philadelphia from VICI pursuant to the long-term lease agreement that already exists. The contract is modified as Non-LV and it relates to other domestic properties as well. The property will remain a part of Caesars Entertainment and there will be no changes…

…since it will continue to benefit from Harrah’s brand, the Total Rewards loyalty network and access to centralized services.

Besides the transaction, which is obviously essential, the two parties agreed to certain lease modifications to the Caesars Palace Las Vegas (LV) and Non-LV leases.

The results they want to achieve involve bringing the lease into alignment with other market precedents and the long-term performance of the properties. Volatility in Caesars’ rent payments to VICI are moderated, whereas near-term increases in rent for VICI are marked.

Thanks to the modifications, Caesars’ flexibility regarding their development ambitions on the East Side of the Las Vegas Strip has improved.

Ambitious Plans

A large number of casinos is in the race for a US…

…that has a chance to enter the wealthy Japanese gaming market and offer its services there.

Japan is a crucial market for Caesars but the country will assign three gaming licenses to the major companies and the results are still unknown. Some other names which are in this race include LV Sand and MGM.

Partnerships Tighten

Earlier in December, Caesars and the online casino platform provider, Scientific Games, expanded their partnership. This move has been expected because the two brands already have a tight bond and a relationship that brings them profit.

The two companies are going to develop the Managed Trading Services (MTS) that will be available in two US states – New Jersey!

Caesars Entertainment is one of the giants of casino-entertainment industry. The company’s goal is to inspire grown-ups to play responsibly and over the years, they have provided excellent products and services to all of those who favor casino games.

Source:

“Caesars Entertainment Announces Completion of Harrah’s Philadelphia Sale and lease Amendments”, Zoltan Tundrik, europeangaming.eu, December 27, 2018.