American casino operator, MGM Resorts International, has declared it has entered into an arrangement that’s set to see it spend approximately $275 million in order to acquire all of the operating assets associated with northern Ohio’s Hard Rock Rocksino Northfield Park.
Arrangement with related REIT:
The vegas -based company utilized a formal Wednesday press release to detail it inked the deal for the Ohio venue with the MGM Growth Properties LLC real estate investment trust (REIT) it established in 2016 and expects the agreement to close during the first half of next year subject to the receipt of customary regulatory approvals.
To cover $60 million yearly lease:
The business operates twelve venues on behalf of MGM Resorts International including The Mirage and Mandalay Bay in Las Vegas and signed an agreement in April it saw cover a $1.06 billion in order to buy Hard Rock Rocksino Northfield Park from past owner, Milstein Entertainment LLC. The thing manages the MGM Grand Detroit, Beau Rivage Resort and Casino Biloxi and Gold Strike Tunica properties and will now profit by charging its parent an annual $60 million lease to your Summit County business.
Casino giant ‘happy ’ with trade:
Jim Murren, Chairman and Chief Executive Officer for MGM Resorts International, announced he was ‘joyful ’ to be adding Hard Rock Rocksino Northfield Park and its own over 700 workers to his company ’s ‘family’ and is currently looking forward to ‘working with them during this transition.
Murren’s announcement read…
“Since opening its doors from 2013, Hard Rock Rocksino Northfield Park has cemented itself as the market leader in gambling and entertainment due to its superior asset quality, premium location and committed employees. We believe Hard Rock Rocksino Northfield Park is a great fit for your MGM Resorts International portfolio and will benefit from our capabilities as a leading international entertainment business and our award-winning M life Rewards Program. We expect earnings and profit growth from this mix.
Plethora of offerings:
Constructed on some 110 acres of property situated around 17 miles north of downtown Cleveland, Hard Rock Rocksino Northfield Park features a 200,000 sq feet gaming flooring offering over 2,300 slots in addition to a plethora of retail and food and beverage outlets. The company also includes a year-round horseracing monitor, a petrol station and a car wash in addition to a 250-seat events space plus a 1,900-seat music place.
Bests other interested parties:
For his part, James Stewart, Chief Executive Officer for MGM Growth Properties LLC, said that there had been ‘important third party interest in the property’ however he was today ‘thrilled to have partnered’ using MGM Resorts International.
Stewart’s announcement read…
“MGM Resorts International offered a rental flow at the high end of our expected range and the continued security of our revenues as exhibited by the powerful rent coverage through the master rental. We expect this transaction to be accretive to adjusted funds from operations, positioning the business for future earnings growth and further demonstrating our commitment to maximize shareholder value.
Leader in Ohio’s gambling market:
The pair explained Hard Rock Rocksino recorded net revenues of around $293 million for the twelve months to the end of June while its earnings before interest, tax, depreciation and depreciation came in at approximately $94 million. Seeing gross gambling revenues, they said that the place has led the Ohio market in 35 of the past 39 months despite offering no table games.
