Caesars Entertainment announced on Tuesday an agreement to sell the LINQ Promenade to a joint venture involving TPG Real Estate and Acadia Realty Trust’s Investment Management Platform for $275 million. The transaction, pending regulatory approvals, is expected to close in the fourth quarter of 2024.
“The sale of the LINQ Promenade represents an accretive, non-core asset sale that will accelerate our debt reduction goals,” said Caesars CEO Tom Reeg. “I want to thank all the team members and tenants of the LINQ Promenade for their partnership over the last 10 years and wish them continued success.”
This sale includes only the LINQ Promenade, a popular shopping, dining, and entertainment district on the Las Vegas Strip. The adjacent LINQ and Flamingo casino-hotels, as well as the High Roller observation wheel located at the back of the Promenade, will remain under Caesars’ ownership.
Alongside this announcement, Caesars confirmed it has closed the sale of the World Series of Poker (WSOP) brand to NSUS Group Inc. for $500 million. This deal consists of a $250 million cash payment and a $250 million promissory note due within five years. As part of this transaction, Caesars retains the rights to host WSOP flagship events at its Las Vegas properties for the next 20 years.
The sale of these non-core assets comes as Caesars works toward reducing its debt load, which currently stands at approximately $12.7 billion. Reeg indicated that portions of the proceeds from the LINQ Promenade and WSOP sales would contribute to this goal, with debt reduction remaining a top priority for the company.
“By the end of this year, we will have reduced debt by 25 percent in absolute numbers since we closed the Caesars transaction (in 2020),” Reeg said during the company’s third-quarter earnings call on Tuesday.
Caesars’ quarterly financial report showed a slight decrease in revenue and income from its Las Vegas properties, including Caesars Palace, Harrah’s, Horseshoe, Paris, and the Cromwell. Third-quarter revenue was down 1.3% year-over-year, totaling $1.06 billion, while income fell by 5% to $226 million. Year-to-date, net revenue stands at $3.2 billion, a 1.3% decrease from last year, with net income down by 10.4% to $696 million.
Caesars Entertainment was represented by Latham & Watkins LLP and Brownstein Hyatt Farber Schreck LLP in the LINQ Promenade transaction, while TPG and Acadia Realty were advised by Kirkland & Ellis LLP.
Original article: https://www.yogonet.com/international/noticias/2024/10/30/83641-caesars-to-sell-linq-promenade-for-275m-aims-to-cut-debt-further
