Tropicana Las Vegas was acquired, the property deal closed Monday, Penn National will operate the resort on the Strip when the property reopens once Nevada authorities allow.
The real estate investment trust, however, said the 1,500-room Rat Pack era casino and its 34-acre site will remain on the market.
As previously announced at the end of March, GLPI is acquiring the Tropicana from Penn for $307.5 million in rent credits that will be applied to the existing leases for May, June, July, August, October, and a portion of November. GLPI owns the land and buildings for more than 30 of Penn’s regional casinos.
The transaction gives Penn some financial breathing room as all 41 of the company’s casinos in 19 states have been closed in an effort to slow the spread of the COVID-19 coronavirus pandemic. Penn had been trying to sell the Tropicana since last year.
Penn will continue to operate the property for two years under a lease agreement until the Tropicana Las Vegas is sold. The agreement includes three one-year extensions at GLPI’s option.
The property closed on March 18 and Penn furloughed the Tropicana’s workforce as part company-wide furlough of 26,000 employees on April 1.
In a statement, GLPI said in collected 98.6% of April rent payment covering its 44 gaming properties, including payments from Penn National.
Shares of GLPI closed at $26.33 on the Nasdaq, down 9 cents or 0.34%.
About Tropicana you can read HERE.