Gaming and Leisure Properties has reached a lease agreement with Bally’s Operating Company. The parties have agreed that the rent will be increased by $20 million annually. The rent increases will be based on market prices. There are also some interesting clauses in the agreement worth talking about.
Lease terms
Under the new agreement, Bally’s can lease back specific properties on the premises. In this situation, the tenant will maximize the profit from this deal. The primary focus will be on the leasebacks. Bally’s needs the money, as the company now has a $620 million line of credit that needs to be repaid. Leasing the property back will help speed up the debt repayment process.
Bally’s is counting on GLPI for financing. So far, the total funding has reached 2.07 billion dollars, so the company needs to prove its ability to repay its debts. Cooperation with GLPI will make the project a notable success, as this corporation has long worked in the field of casino resort construction. Its experience and expertise will allow Bally’s to realize its project at the highest level.
Such investments also show that the project’s customer is confident in the bright future of the land-based casino market. This is very optimistic given the development of the iGaming industry, which is becoming popular in many countries worldwide.
One of the main reasons for its popularity is the variety of entertainment it offers. After all, some popular games exist only in virtual format, and cannot be found in land-based casinos. As an example, we can talk about the hit of recent years, the Jet-X game. Detailed information about it is featured on the JetX-game website, which ranks top among other gambling-related resources. If you visit this website, you can find the game in the catalogs of most major online casinos. This and thousands of different games are available directly from phones, which allows you to enjoy gambling adventures without leaving home. In such a situation, the number of customers in land-based casinos may decrease.
Full details on the financing of Bally’s in Chicago
Bally’s management believes that the proceeds from the sale and leaseback of the property can allow the project to be realized in the indicated timeframe. New financing and development agreements will also provide additional support. The company will also cover the costs by publicly offering shares and financial resources. Experts have already calculated everything and consider this project feasible if the terms are not delayed. Bally’s Casino could be a grandiose project for Chicago.
Design details of the new casino entertainment complex in Chicago
Bally’s is planning to build a hotel with 500 apartments. The complex will include a casino, parking lot, entertainment center, and more. Currently, these are only plans, as construction has not yet begun. The corporation’s management considers this project one of the most ambitious. This place should attract locals and tourists from all over the world, which will be an additional bonus for Chicago in the form of tax deductions and profits.