Vici Properties has confirmed its previously announced $843.3m Jack Entertainment purchase that sees the firm acquire two Ohio-based entities.
The firm has secured 100 per cent of the membership interest of two subsidiaries of Jack Ohio, which owns the casino-entitled land and real estate and related assets of Jack Cleveland Casino, and the racing and video lottery-authorised land and real estate and related assets of Jack Thistledown Racino, located approximately 10 miles southeast of downtown Cleveland in the city of North Randal.
Simultaneous with the closing of the transaction, the real estate investment trust has entered into a master triple-net lease agreement with subsidiaries of Jack Entertainment related to the assets.
This sees an initial total annual rent of $65.9m, and an initial term of 15 years with four 5-year tenant renewal options. The company also closed on a $50m loan to a subsidiary of Jack Entertainment, which bears interest at a rate of 9 per cent per annum.
John Payne, president and chief operating officer of Vici Properties, explained: “We are thrilled to close the transaction with Jack Entertainment, adding our fifth tenant to our portfolio and increasing our exposure to the limited license state of Ohio, which continues to be one of the healthiest gaming markets across the country.
“This acquisition adds two new, high-quality assets to our portfolio and represents our ability to creatively structure transactions that meet the needs of our tenants while creating value for our shareholders.”
Jack Cleveland Casino opened in May 2012 in downtown Cleveland and features approximately 96,000 square feet of gaming space, 1,300 gaming machines, over 120 table games and eight food and beverage outlets.
Jack Thistledown Racino opened in April 2013 in North Randall, Ohio and is lauded as “the leading thoroughbred racino in the Cleveland MSA”. The property is situated on 129 acres and features approximately 57,000 square feet of gaming space, 1,459 gaming machines and six food and beverage outlets.