Caesars Entertainment Corp. and VICI Properties Inc. today announced they have signed an agreement to sell Harrah’s Reno Hotel and Casino “Harah’s Reno” to an affiliate of CAI Investments (“Buyer”) for $50 million. Proceeds from the transaction will require 75% to be distributed to VICI and 25% to Caesars, with annual rent payments under the Non-CPLV Master Lease between Caesars and VICI unchanged.

Under the terms of the agreement, Caesars will continue to operate the property at the end of the transaction, subject to a short-term lease with the buyer, allowing Caesars to suspend operations of the property during the second half of 2020. At the end of its term, Caesars will deliver the property to buyers, which will be redeveloped by non-game hotels and complex developments.

“We recognize Harriers’ long legacy in Reno, where the brand began 82 years ago, and our role in the community. We are excited for the buyer to be committed to the community and support the redevelopment of this awesome property. We worked closely with the buyer to provide a reasonable closure plan for our excellent employees in Reno to have enough time to secure their next job, including prioritizing related vacancies in Lake Taho and other properties in Nevada, including Las Vegas,” said Tony Rodio, CEO of Caesars Entertainment.

“Harra’s Reno sale demonstrates our ability to continue to work constructively with our tenants to improve our individual businesses. This disposition allows VICI, along with Caesars, to optimize the quality of its real estate portfolio and reallocate proceeds to other attractive growth opportunities while maintaining the existing financial terms of non-CPLV master leases,” said John Payne, President and COO, VICI Properties.

“Being from the Reno/Spark region, it takes great pride for us to invest in the Reno region by redeveloping this property,” said Christopher Bieber, CEO of CAI Investments (CAI). “CAI is excited to work with Gryphon Private Wealth Management (GPWM) as a capital partner for the project. Kirk Walton and Philip Oleson, chairmen of GPWM Opportunity Zone Funds, who will invest the capital needed for the project, believe in Reno’s long-term growth potential.”

The agreement allows Caesars to maintain guest data and does not place restrictions on Caesars’ marketing activities. Reno will continue to participate in Caesars Rewards Network during a short-term lease with buyers.

The transaction is subject to Eldorado/Caesars combination, regulatory approval and other customary closing conditions. 슬롯

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