U.S. real estate investment trust VICI Properties Inc. and casinos and racetracks operator Penn National Gaming Inc. plan to acquire Greektown Casino-Hotel in Detroit for around $1 billion in cash.
The companies agreed to acquire the real property and operations of the casino-hotel from gaming, hospitality, and entertainment company JACK Entertainment LLC, a unit of Rock Ventures.
Per terms of the agreement with JACK, VICI will acquire Greektown’s land and real estate assets for approximately $700 million and Penn National will purchase the casino-hotel’s operations for $300 million.
Penn National will ink a triple-net lease agreement with VICI concurrent with the completion of the acquisition transaction. Annual rent will initially total $55.6 million under the 15-year lease, which offers the option for four five-year renewals. The transaction is expected to close in mid-2019.