Caesars Entertainment Corporation (NASDAQ:CZR) has disclosed that it will be selling its Harrah’s Las Vegas venue to a local real estate firm (VICI Properties Corporated) for $1.14 billion before leasing the venue back for roughly the next 15 years.
Under the terms of the deal, Caesars Entertainment will acquire an adjacent 18.4-acre parcel of land from VICI Properties solely for the development of a new 300,000 square feet convention center. The new center will reportedly feature the largest column-free ballroom in the nation.
The Las Vegas-based company announced that the Harrah’s Las Vegas sale is forecasted to close before the end of 2017. Additionally, the sale will include certain provisions which could see VICI Properties purchasing the completed convention center before leasing it back to the casino operator.
According to Mark Frissora, the President, and CEO of Caesars Entertainment, the agreement with VICI Properties illustrates his company’s commitment to chasing various growth opportunities as well as maintaining balance-sheet discipline.
Here’s the statement Frissora posted on Thursday:
“We expect the sale and lease-back of Harrah’s Las Vegas will allow us to acquire Centaur [Holdings] and develop the convention center without increasing leverage. The sale and lease-back transaction is our first post-emergence transaction with VICI [Properties Incorporated] and maintains Harrah’s Las Vegas’ connectivity to our network, which will create value and provide benefits to our guests.”
It is important to mention that, in order to avoid any doubts, Caesars Entertainment highlighted that even after the deal is finished, the firm will continue to operate all of the “gaming, hotel operations, and all other services inside Harrah’s Las Vegas.”
Featured Image: twitter
