Gaming And Leisure Properties To Buy Meadows Racetrack And Casino For $465 Mln

(RTTNews) - Gaming and Leisure Properties, Inc. (GLPI), a real estate investment trust specializing in casino properties, Wednesday said it has agreed to acquire the Meadows Racetrack and Casino from Cannery Casino Resorts LLC for $465 million. The company expects the acquisition, which will be funded through a combination of equity and debt, to be immediately accretive upon closing.

Gaming and Leisure said the purchase price for the property represents around 9 times its EBITDA in 2013. The company plans to sell the entities holding the licenses and operating assets to a third property operator, while retaining ownership of the land and buildings.

Located in Washington, Pennsylvania, the Meadows Racetrack and Casino constitutes a 180,000 square foot casino, a 5/8 mile racetrack with a 500-seat grandstand, a 24-lane bowling alley, 11 casual and fine dining restaurants, and bars and lounges.

The casino contains 3,317 slot machines, 61 table games and 14 poker tables.

Adjacent to the casino, a new 154-room hotel owned and operated by a third party operator is being constructed, and will open in 2016. In addition, a new third party retail center is currently planned, and the property has space that can be developed for hosting an indoor event.

The seller, Cannery Casino Resorts, intents to use the proceeds from this sale to reduce debt.