Caesars, VICI Sell Harrah’s Louisiana Downs for $22M; More Transactions

NATIONAL REPORT—Caesars, VICI Properties and AHIP have completed hotel transactions. Here’s more on the recent deals in Louisiana and Florida:

Caesars and VICI Properties Sell Harrah’s Louisiana Downs to Rubico
Caesars Entertainment Inc. and VICI Properties Inc. have reached definitive agreements to sell Harrah’s Louisiana Downs Casino, Racing & Entertainment to Rubico Acquisition Corp. for $22 million. The proceeds of the transactions shall be split $5.5 million to VICI Properties and $16.5 million to Caesars subject to customary adjustments for cash and net working capital. The annual base rent payments under the Regional Master Lease between Caesars and VICI will remain unchanged. The transactions are expected to close at the end of 2020 or early 2021 and are subject to regulatory approvals and other closing conditions.

American Hotel Income Properties Completes the Sale of the Wingate Tampa Hotel
American Hotel Income Properties REIT LP has closed the previously announced sale of its 86-room Wingate Tampa property for gross proceeds of $7.5 million. AHIP has provided $2.65 million in financing for the buyer, secured by a mortgage, which is repayable at the end of three years along with accrued interest. Net proceeds of the sale will be used to repay amounts outstanding under the company’s revolving credit facility.