Gaming and Leisure Properties (GLPI) has completed the acquisition of the land associated with the Hard Rock Casino Rockford development in Illinois from an affiliate of 815 Entertainment. The $100 million deal includes a 99-year ground lease agreement with 815 Entertainment, with GLPI committing to provide up to $150 million in development funding through a senior secured delayed draw term loan.
Land Acquisition and Ground Lease Agreement:
In a strategic move, GLPI has acquired the land linked to the Hard Rock Casino Rockford project in Illinois for a substantial sum of $100 million. The acquisition was completed from an affiliate of 815 Entertainment, solidifying GLPI’s position in the evolving casino development landscape. The accompanying ground lease agreement spans an extensive 99-year term, with an initial annual rent of $8 million. The lease is subject to a fixed 2% annual escalation from the first anniversary, ensuring a structured and predictable financial arrangement for both parties.
Development Funding Commitment by GLPI:
Beyond the land acquisition, GLPI has demonstrated its commitment to the success of the Hard Rock Casino Rockford project by pledging up to $150 million in development funding. This commitment is facilitated through a senior secured delayed draw term loan, subject to regulatory review. The loan carries an interest rate of 10%, with a draw period of up to one year and a maximum outstanding period of up to six years. Importantly, the loan is prepayable without penalty following the opening of the Hard Rock Casino in Rockford, reflecting GLPI’s confidence in the project’s potential success.
Hard Rock Casino Rockford Project Overview:
The permanent Hard Rock Casino Rockford is slated to be a premier entertainment destination, featuring a 65,000-square-foot casino equipped with approximately 1,500 slot machines, a sportsbook, and an array of 60 table games, including popular options like blackjack, roulette, and craps. Plans also include the potential addition of a poker room with 10-12 tables, catering to poker enthusiasts. As a part of the comprehensive resort experience, Hard Rock envisions a 250-room hotel to complement the gaming facilities. The project is currently under construction, with a scheduled opening date in August 2024.
Industry Voices and Outlook:
Peter Carlino, GLPI’s Chairman and CEO, expressed optimism about the transaction, emphasizing the attractive nature of the ground lease and the strategic value it adds to GLPI’s portfolio. Jon Lucas, Chief Operating Officer for Hard Rock International, highlighted the strength of partnerships, affirming the brand’s commitment to delivering another world-class entertainment property with the Hard Rock Casino Rockford.
GLPI’s acquisition of the Hard Rock Casino Rockford land, coupled with the ground lease agreement and substantial development funding commitment, positions the company as a key player in the thriving casino development sector. As the project progresses towards its anticipated opening in August 2024, the collaboration between GLPI, 815 Entertainment, and Hard Rock International sets the stage for the creation of a top-tier entertainment destination in Rockford, Illinois.