Caesars Entertainment has closed its previously announced sale of the LINQ Promenade to a joint venture formed between TPG Real Estate and the Investment Management Platform of Acadia Realty Trust for $275 million. The Promenade is a shopping and dining attraction between the Flamingo Las Vegas and Caesars’ LINQ Hotel + Experience on the Las Vegas Strip.
The deal includes the High Roller Observation Wheel but not the hotels that surround the attraction. The sale, which was valued at roughly half of what it cost the company to build the retail, dining and entertainment space more than 10 years ago, comes as Caesars works on paying down nearly $13 billion in debt.
Concurrent with the transaction’s closing, the casino operator made a $275 million voluntary prepayment of a Term Loan B due 2030 with the proceeds from the transaction.
Latham & Watkins LLP and Brownstein Hyatt Farber and Schreck, LLP represented Caesars on the transaction. Kirkland & Ellis LLP provided transaction counsel to TPG & Acadia.
The deal was initially announced in October, in conjunction with the operator’s third-quarter earnings conference call.
Caesars spent $550 million to develop the LINQ Promenade. It opened many of its retail and dining elements in late 2013, followed by the March 2014 unveiling of the High Roller. The attraction was the world’s tallest observation wheel until 2021 when it was surpassed by the 820-foot-tall Ain Dubai in the United Arab Emirates.
LINQ Promenade includes retail outlets, restaurants including Yard House and Gordon Ramsey’s Fish & Chips, and the Brooklyn Bowl concert venue.
During October’s announcement of the sale, Caesars CEO Tom Reeg said the proceeds from the sale of “non-core assets” would help the company pay down a portion of its $12.7 billion in debt, which he described as the company’s “No. 1 priority.” He said other parts of the company could be sold to further pay down debt, but no further details were provided.
LINQ Promenade is surrounded by two of the company’s Strip resorts — Flamingo and the LINQ Hotel and Casino — and serves as a gateway to the Caesars Forum conference center.
Original article: https://www.yogonet.com/international/news/2024/12/13/88446-caesars-closes-sale-of-linq-promenade-for-275-million
