Gaming and Leisure Properties Inc (GLPI) has recently completed the acquisition of the land for Bally’s new Chicago casino, marking a significant step in the development of this highly anticipated project. The $250 million purchase of the former Chicago Tribune publishing center site was finalized as part of an agreement between GLPI and Bally’s, with ground expected to be broken before the end of the year.
The agreement between the two companies also includes a renegotiation of the current lease for an annual rent of $20 million, providing GLPI with an initial cash yield of over 8%. This investment not only secures the land for the Chicago casino but also fills the funding gap that Bally’s was facing for the project. In addition to the Chicago property, GLPI also acquired the real estate for Bally’s properties in Shreveport and Kansas City as part of the deal.
GLPI’s total investment in the Chicago casino and hotel project amounts to $1.19 billion, offering a blended initial cash investment yield of 8.4%. This significant investment underscores GLPI’s commitment to developing a world-class entertainment destination in the heart of Chicago, as highlighted by Chairman and CEO Peter Carlino.
Carlino expressed his excitement for the development of Bally’s Chicago, emphasizing the collaboration with the Bally’s team and various stakeholders in the city to create a must-visit casino resort. Meanwhile, Bally’s has been operating a temporary casino at the Medinah Temple in Chicago as construction continues on the permanent facility. The temporary casino has already seen impressive success, attracting over 1.3 million visitors in its first year and generating $114 million in adjusted gross receipts, providing the city with $12.9 million in tax revenue.
Overall, the completion of the land acquisition for Bally’s Chicago casino represents a significant milestone in the project’s development, setting the stage for the creation of a premier entertainment destination in one of the nation’s largest metropolitan areas. With GLPI’s strategic investment and Bally’s commitment to delivering a top-notch gaming experience, the future looks bright for the Chicago casino project.