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Carl Icahn Cashing in His Chips on Tropicana Entertainment, Gathering $1.85 Billion

Eldorado Resorts to Get Tropicana Entertainment Business; Sell Residence to Gaming & & Leisure

Tropicana Atlantic City

Icahn Enterprises consented to sell its majority-owned subsidiary, Tropicana Home entertainment Inc., for a total cost of $1.85 billion. The deal will see Tropicana’s realty go to Video gaming and Leisure Properties Inc. and its video gaming and hotel operations to Eldorado Resorts Inc.

. Icahn Enterprises (NASDAQ: IEP)first gotten an interest in Tropicana in 2008 after the predecessor company filed for Chapter 11 insolvency reorganization. It showed to be a winning gamble.

“Tropicana was insolvent and desperately needed brand-new management. At that time, we determined this undervalued asset as being a best scenario to deploy our method operandi, by which we look for to get underestimated possessions, nurture, guide and enhance their condition and operations, and to eventually significantly boost value for all shareholders,” Carl C. Icahn, chairman of Icahn Enterprises, said. “We turned Tropicana into a great casino company that today owns 7 gambling establishments.”

The crown gem of its holdings is the 1,882-room Tropicana Casino & & Resort in Atlantic City, which Icahn picked up for $200 million, or about $106,270 per room.

The 7 combined residential or commercial properties included in the deal overall 350,000 casino square feet, 7,416 slot machines, 237 table video games and 4,993 hotel rooms. The list price corresponds to about $370,520 per space.

Tropicana Atlantic City is third-largest grossing gambling establishment in Atlantic City, drawing in $489 million in earnings in 2017 and posting a gross earnings of $91.9 million, according to the NJ Department of Gaming Enforcement. The revenue was an almost 72 percent jump over 2016 earnings.

In the offer, Gaming and Leisure Characteristic (NASDAQ: GLPI )will pay$1.21 billion for substantially all of Tropicana’s realty. It will enter into a master lease with Eldorado Resorts (NASDAQ: ERI) for the residential or commercial properties. That offer does not consist of the MontBleu Casino Resort & & Spa in South Lake Tahoe and the Tropicana Aruba Resort and Gambling Establishment. Tropicana plans to dispose of Tropicana Aruba Resort and Gambling establishment prior to closing.

Eldorado will participate in a triple-net master lease for the acquired properties with an initial term of 15 years, with renewals of up to Twenty Years at Eldorado’s alternative. The initial annual lease under the regards to the lease is expected to be $110 million.

Eldorado will use a portion of those earnings from the sale of the Aruba property to assist money the remaining $640 million of money factor to consider payable in the acquisition.

Eldorado Resorts will end up owning the running assets of seven casinos in six states, including the Tropicana Laughlin Hotel and Casino and the MontBleu Gambling Establishment Resort & & Medical Spa in South Lake Tahoe; as well as gambling establishments in Indiana (Tropicana Evansville); Louisiana (Belle of Baton Rouge Gambling Establishment & & Hotel); Mississippi (Trop Casino Greenville); Missouri (Lumière Place); and New Jersey (Tropicana Casino and Resort, Atlantic City).

TA Real Estate Pulls in $2 Billion for a New Core Residential Or Commercial Property Fund

Will Target a Diversified Portfolio Across Major U.S. Markets

TA Real estate’s newest offer was the $106.5 million purchase of Gables Woodley Park in Washington DC.TA Real Estate, amongst the biggest real
estate financial investment supervisors in the United States, is set to get bigger -much larger. The Boston-based company has actually introduced a brand-new core home investment with preliminary funding of$ 2.08 billion. The main fund, TA Real estate Core Home Fund, and three connected feeder funds held their very first capital calls late last month. Among the associated feeder funds accepted a single investment from an unidentified outdoors investor of$1.038 billion, according to a filing with the Securities and Exchange Commission. A second associated fund accepted a single investment of$518.8 million. The primary fund will continue to accept brand-new investments after its preliminary raise of$512.8 million. Also a 4th associated fund will continue to accept investments after its preliminary raise of$13.2 million. Authorities with TA Real estate stated they could not comment due to the fact that of the ongoing nature of fundraising. Mitsubishi

Jisho Investment Advisors of Tokyo is dealing with the ongoing securities offerings. TA Realty has been on the roadway this

year making presentations on the fund to numerous public pension funds, including the City of Newport RI, and

the Plymouth County( MA )Retirement Board, which committed$25 million to the fund. TA Real estate is seeking to develop a diversified portfolio of core properties throughout the U.S. Over the previous three years, TA has actually invested about $3.3 billion in all four

major home types, according to CoStar information. About 36%of the spending has been for commercial residential or commercial properties, 34 %office, 24%multifamily, and 6%retail. Not counting TA Real estate’s $2 billion raise, alternative possessions information supplier Preqin reported that 47 private real estate funds held a last close in the first quarter, raising an overall of

$33 billion in financier commitments. Preqin stated it anticipated those figures to rise to 10%as more info appeared. A 10%boost might be enough for the quarter tally to go beyond the previous record embeded in the very first quarter

of 2008 when 79 funds protected$35 billion. Looking ahead, competition for capital shows no signs of easing off with a record 642 funds in market, targeting$ 206 billion.”Exactly what is likewise striking about activity in Q1 is the percentages of funds which have had the ability to raise

more capital than their preliminary target, in many cases by a substantial margin,” said Oliver Senchal, head of real estate items for

Preqin.” Nevertheless, with the sheer variety of funds looking for capital there will be numerous that will fail to close in the year ahead, particularly when commitments are being directed to a smaller sized proportion of supervisors with the longest and greatest track records. “

$1.6 Billion in Debt Buries 9 West

Another weekend, another major retail personal bankruptcy. This time it was privately held Nine West Holdings Inc., a females’s shoe and garments wholesaler, which declared bankruptcy after acquiring about $1.6 billion in debt, the second-largest amount of financial obligation on rating firms’ list of ‘loans of issue’ in 2015.

Coincidentally, the company likewise reported $1.6 billion in earnings in fiscal 2017.

Private equity firm Sycamore Partners Management acquired the company and associated brands in the 2014 for $2.2 billion.

In overall, roughly $925 million of brand-new financial obligation and equity was raised in connection with the 2014 acquisition. Its existing annual interest expense is roughly $113.9 million, compared with just $88.1 million of adjusted EBITDA in 2017.

Over 80% of Nine West’s sales originate from wholesale circulation and sales to outlet store, off-price sellers and mass merchants. Its wholesale units include such brand names as Anne Klein, Bandolino, Gloria Vanderbilt and Jessica Simpson.

However, it also operates 70 brick and mortar retailers – all of which it plans on closing and has petitioned the courts to allow it to cancel the leases on those stores.

9 West Group has actually experienced substantial headwinds in the last a number of years, inning accordance with its interim CEO Ralph Schipani, who mentioned the basic shift away from brick-and-mortar shopping in addition to a shift in customer demographics away from top quality clothing, and altering style and style trends.

Not only did its own retail sales suffer however its wholesale operations saw decreases at much of its big suppliers, such as Sears, Bon-Ton, and Macy’s, inning accordance with Schipani in a bankruptcy court statement. Those declines struck two of Nine West’s the majority of notable product groups too, shoes and denims.

9 West attempted to right those trends by introducing a brand-new brand name, Easy Spirit, designed for a “more youthful, more stylish customer,” but fizzled in forecasting their preferences, Schipani stated, and the effort failed. The brand lost $20 million in 2016. The losses were additional exacerbated by a significant stock purchase that ultimately did not meet sales expectations.

At this point, the business would require substantial capital and operational financial investments to reverse the 9 West Group service, capital the debtors do not have, Schipani said, including the debtors “think this time, attention, and loan would be much better invested in their historically stable jeanswear, clothing and fashion jewelry businesses.”

Going forward, 9 West intends to have the ability to gain bankruptcy court approval to offer its brands to Genuine Brands Group LLC for $200 million.

If approved, Nine West will shutter its existing retail store operations. Rejecting the retail leases will conserve Nine West approximately $3 million in rental and operating expenses per month. The stores published just $125 million in earnings in financial 2017.

The store closures struck two publicly traded retail landlords hardest. Simon Home Group (NYSE: SPG)will lose 35 stores. Tanger Factory Outlet Centers. (NYSE: SKT) will see 19 stores closed. However, neither of the REITs noted 9 West amongst their 10 biggest occupants.

9 West Holdings’ bankruptcy moved the institutional loan retail default rate to 8.6% compared to the overall rate of 2.7%, Fitch Ratings reported today.

The filing lifted the overall retail term loan volume to $5.9 billion.

“Our retail sector institutional term loan default rate projection is 10%, relating to $7 billion of volume, which would surpass the 8.2% rate the sector embeded in 2017,” Fitch reported.

Fitch prepares for more big retail chains to file personal bankruptcy this year. About 10% of the sellers in Fitch’s market index are listed on Fitch’s Leading Loans of Issue list, showing a product default danger. These retail chains consist of: Neiman Marcus Group, Sears Holdings, FullLBeauty Brands, David’s Bridal, Toms Shoes, Indra Holdings, Everest Holdings, Things Kept In Mind, NYDJ Garments and Vince.

Nevada gambling establishment gambling win tops $1 billion again in February

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L.E. Baskow Players take pleasure in a craps game throughout the Golden Gate’s 112th year anniversary celebration on Saturday, Jan. 13, 2018.

Wednesday, March 28, 2018|10:13 a.m.

Nevada casinos continued a winning streak in February, topping the $1 billion mark in betting incomes for the 2nd month in a row.

The state Gaming Control panel reported today that the $1.02 billion that casinos statewide made from gamblers amounted to a 7.7 percent boost compared to the same month in 2017.

For the fiscal year starting last July, the so-called “gaming win” has actually increased 2.3 percent.

The state gained nearly $44.2 million in percentage charges based upon the taxable incomes created in February.

That was a 15 percent decline from the very same period in 2017, when the state gathered almost $52 million.

Gambling establishments on the Las Vegas Strip logged jackpots of more than $603 million for the month, up more than 11 percent from a year previously.

That was just under 60 percent of the statewide total.

GGP Accepts Sweetened Buyout Deal from Brookfield for $9.25 Billion Money Plus Stock

Upgraded: Chicago-Based Mall Owner Accepts Revised Quote With More Cash After Turning Down Initial Deal

Shopping mall owner GGP Inc. (NYSE: GGP)has actually accepted a sweetened offer from Toronto-based Brookfield Residential Or Commercial Property Partners L.P. (Nasdaq: BPY)to sell the remainder of the company Brookfield does not currently own for $9.25 billion cash plus stock.

The companies revealed the offer late Monday. Under the agreement unanimously endorsed by an unique committee of GGP’s board, investors of the Chicago-based retail property owner can choose to get either $23.50 cash per common share, one system of Brookfield Residential or commercial property stock, or one share of BPY U.S. REIT, a new REIT being formed by Brookfield subject to proration based upon a cash factor to consider of $9.25 billion.

The winning cash quote has to do with 2.2% above Brookfield’s preliminary Nov. 13, 2017 offer of $23 per share to buyout GGP. Brookfield currently owns 34% of GGP, and had actually pursued a combination with among the largest owners of U.S. shopping mall, second behind only Simon Home Group (NYSE: SPG), over the past several months.

“This is a compelling deal that makes it possible for GGP investors to get premium worth for their shares and gives them the ability to participate in the long-lasting advantage of their financial investment,” stated Brookfield Property CEO Brian Kingston, in a declaration. “We are pleased to have actually reached a contract and are delighted about integrating Brookfield’s access to large-scale capital and deep operating proficiency across multiple realty sectors with GGP’s portfolio of irreplaceable retail assets.”

Daniel Hurwitz, lead director and chairman of GGP’s special committee, stated the committee carried out comprehensive due diligence given that Brookfield’s preliminary offer.

“After mindful factor to consider helped by our independent consultants, the special committee figured out that Brookfield’s improved proposition, which includes an increase in the money part of the factor to consider and the capability to receive shares in a newly noted REIT entity, provides GGP investors with certainty of value, in addition to upside capacity through ownership in an internationally varied property company,” Hurwitz said.

Stifel & & Associates analyst Simon Yarmaks noted that the transaction structure had actually altered from the initial $23-per-share bid by Brookfield, which was comprised of 50% money and 50% BPY units. In the most recent deal, Brookfield upped its cash deal 2.2% to $23.50 per share for an overall cash factor to consider of $9.25 billion, which represents 61% money and 39% equity in Brookfield or the new REIT it prepares to launch.

Brookfield Residential or commercial property, the realty arm of Toronto-based Brookfield Possession Management Inc., is not currently structured as a REIT.

The combined company will be one of the world’s biggest CRE enterprises with $90 billion in overall assets and annual net operating earnings of more than $4 billion.

Following completion of the deal, GGP shareholders will own about 26% of the combined business.

The transaction undergoes the approval of GGP investors. BPY and its affiliates have consented to vote in favor of the deal, which is expected to close early in the 3rd quarter.

Weil, Gotshal & & Manges LLP, Goodwin Procter LLP and Torys LLP are acting as legal counsel to Brookfield and PwC is working as its tax advisor. Goldman Sachs & & Co. LLC is functioning as financial consultant and Simpson Thacher & & Bartlett LLP is serving as legal counsel to GGP’s special committee. Citigroup Global Markets Inc. is functioning as financial advisor and Sullivan & & Cromwell LLP is working as legal counsel to GGP.

Editor’s note: 6 pm PDT – Added comments from REIT analyst and further information about the modified transaction’s structure.

Final expense of Raiders arena in Las Vegas pegged at $1.8 billion

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Copyright 2017 LV Arena Company, LLC

This rendering reveals the Las Vegas Raiders arena west of Interstate 15 and the Strip. Construction on the 65,000-seat stadium is expected to be finished in time for the 2020 NFL season.

Blackstone REIT Expands '' Last-Mile ' Warehouse Holdings with $1.8 Billion Portfolio Purchase

22 Million-SF Canyon Industrial Portfolio Consists Of Amazon, DHL, FedEx and Coca-Cola Amongst 377 Tenants

Blackstone Realty Earnings Trust, Inc. (BREIT) revealed it has successfully closed on a $1.8 million transaction to obtain a 22 million-square-foot portfolio consisting of 146 infill storage facility and circulation properties throughout the country.

Referred to as the Canyon Industrial Portfolio, the properties were offered by a set of funds sponsored by Boston-based Cabot Properties: Cabot Industrial Worth Fund IV, L.P. and Cabot Industrial Worth Fund IV Manager, LP. Blackstone had previously put the portfolio under contract in late December.

The gotten properties includes 146 “last-mile” structures, with the biggest concentration in Chicago at 4 million square feet accounting for 18% of the portfolio’s aggregate base rent; followed by Dallas (3.22 million SF, 12%), Baltimore and Washington D.C. (1.86 million SF, 12%), Los Angeles and Inland Empire, CA (1.12 million SF, 7%), South-Central Florida (1.12 million SF, 7%) and Denver (1.07 million SF, 6%).

The portfolio’s 377 occupants consist of Amazon, Federal Express, DHL, Coca-Cola, Fiat Chrysler and the U.S. federal government, according to a securities filing.

BREIT noted that the industrial job rates throughout the portfolio’s markets has actually continued to decline over the previous seven years and is presently just 4.6%, while rents have actually increased 5.7% year-over-year.

“The ongoing market lease development in the portfolio’s markets resulted in leas on brand-new leases surpassing leas on expiring leases by 9% in the portfolio during the third quarter of 2017,” Blackstone stated, adding that the portfolio has some leasing upside as it’s presently 90% inhabited.

“BREIT’s portfolio, with its emphasis on steady, income-producing warehouse and apartment or condo assets, is well placed to take advantage of continued tailwinds in these sectors,” stated A.J. Agarwal, Blackstone REIT president and head of U.S. core-plus real estate for the private-equity giant.

The Blackstone-sponsored non-traded REIT buys supported U.S. industrial realty homes, including multifamily, industrial, retail and hotel possessions.

BREIT’s portfolio now amounts to $7 billion over 272 properties, consisting of 33 million square feet of commercial area and 17,200 multifamily houses, with some select-service hotels and grocery-anchored shopping centers.

Blackstone has re-entered the U.S. commercial market in a huge way considering that last year, when it acquired a 38-property portfolio totaling 4.4 million square feet in Southern California from Principle Realty Investors for about $500 million.

In January, the private-equity business consented to buy Canada-based Pure Industrial Real Estate Trust, which owns and operates industrial residential or commercial properties throughout The United States and Canada, in an all-cash offer valued at about $2 billion.

Host Hotels Consents To Purchase Trio of Hyatt Hotels in Hawaii, CA, FL for $1 Billion

The 301-room Andaz Maui is amongst a trio of resort hotels under contract to be acquired by Host Hotels & & Resort in a $1 billion transaction.

credit: Hyatt Hotels Corp.Bethesda, MD-based

Host Hotels & Resorts, Inc. (NYSE: & HST) revealed an arrangement to buy the 301-room Andaz Maui in Wailea, Hey There; the 668-room Grand Hyatt San Francisco in the city’s Union Square district and the 454-room Hyatt Regency Coconut Point in Bonita Springs, FL for $1 billion.

Host Hotels posted a $25 million deposit in contracting to acquire the three residential or commercial properties, according to Host Hotels President and CEO James Risoleo, who announced the transaction Wednesday afternoon in the company’s fourth-quarter and full-year 2017 earnings report.

“These possessions are fee-simple and situated in what the company believes are some of the leading growth markets in the United States, consisting of Maui and San Francisco, which are taking advantage of strong accommodations need and restricted supply development,” Risoleo said.

Host Hotels currently owns 10 Hyatt homes. Hyatt will continue to manage the hotels post-sale.

Host Hotels likewise revealed on Wednesday it closed the $190 million sale of the Secret Bridge Marriott in Arlington, VA, on Jan. 9 and is under agreement to sell the W New York for $190 million in a separate deal anticipated to close in the second quarter. Capstone Equities and Highgate are reported to be the unofficial purchasers.

Host Hotels reported fourth-quarter revenues of $0.42 per share on profits of $1.34 billion. For the year, HST reported $5.39 billion in incomes, about 0.8% below 2016
“By opportunistically generating income from a terrific piece of property in Washington, D.C. and reducing our direct exposure in New york city, we are using essential pillars of our modified strategy that our company believe will develop additional worth for stockholders gradually,” Risoleo stated in a release.

Singapore Sovereign Wealth Fund Leading $2 Billion Investment in North American Data Centers

A trio of financiers led by GIC, the sovereign wealth fund established by the Government of Singapore, has created a brand-new financial investment automobile to establish and get data centers across The United States and Canada. The financiers have actually supplied an inital $800 countless equity to capitalize the endeavor right from the gate with a target of making $2 billion in data center development and financial investment.

The other financiers in newly formed EdgeCore Web Real Estate LLC include Mount Elbert Capital Partners, a Denver-based private investment firm, and OPTrust, a Toronto-based international investor.

Tom Ray, chairman and CEO of Mount Elbert, will lead EdgeCore Web Real Estate.

EdgeCore Web Real Estate’s preliminary roll out will consist of information campus developments across 6 markets.

The business has actually gotten land in Mesa, AZ, and prior to completion of this quarter, the business prepares to close on other websites it has under agreement in Dallas and Reno and begin building right away upon acquisition with strategies to complete the first structure in these markets by late 2018.

Furthermore, in the 2nd quarter of this year, EdgeCore prepares to pursue getting advancement sites in three other Tier I markets. It stated it is lookinig in Northern Virginia, Silicon Valley and Chicago.

Lee Kok Sun, primary financial investment officer of GIC Real Estate, stated, “As a long-lasting value financier, our company believe the secular growth in information usage and public cloud use will generate appealing returns in the information center sector.”

Choice Residence Purchasing CREIT in $6 Billion Deal to Develop Canada'' s Largest REIT

Combined Firms Will Have Enterprise Worth of $16 Billion with 752 Properties Totaling 69 Million SF

Choice Properties Property Investment Trust has actually agreed to buy Canadian Real Estate Financial Investment Trust in a $6 billion transaction they say will produce the biggest REIT in Canada with a combined enterprise worth of $16 billion.

Toronto-based Choice Properties REIT stated it would acquire all CREIT’s possessions and assume all of its liabilities, consisting of long-term debt for $22.50 in money and 2.4904 Choice Properties units per CREIT unit, on a completely pro-rated basis.

“We are excited to be producing Canada’s leading diversified REIT. Choice Properties’ expanded, diversified property portfolio, anchored by Canada’s largest retailer, will provide unitholders of both Choice Characteristics and CREIT the chance to take advantage of the future growth and value production chances of this strategic transaction,” said John Morrison, president and chief executive of Option Characteristic, in a declaration.

The combined entity will have a portfolio of 752 homes made up of 69 million square feet of gross leasable location. Loblaw Companies Ltd. and George Weston Ltd. will have integrated proforma ownership of 65%.

“This transformational acquisition leads to the development of a real estate financial investment trust with durable qualities and includes value creation chances to Choice Properties’ existing strong portfolio of retail assets,” included Galen G. Weston, chairman and chief executive of Loblaw and GWL, in a declaration.

The companies say the combined entity will be Canada’s preeminent varied REIT. The retail portfolio, which will comprise 78% of net operating earnings and is concentrated on exactly what the pair call “necessity-based sellers” that makeup 85% of the retail possessions. Industrial possessions will contribute 14% of NOI of the combined REIT with office possessions comprising the remaining 8%.

Stephen Johnson, president of REIT, stated the combination likewise offers incredible opportunity for Option Residence to take advantage of the companies’ combined advancement pipeline to produce long-lasting value.

“Together, the combined REIT is uniquely placed to provide outcomes for unitholders as the owner, supervisor and developer of a top quality portfolio of varied assets,” Johnson said in a statement.

In the brand-new combined REIT, Morrison becomes the vice-chairman of the board of trustees while Johnson will end up being president and chief executive.

Using the Option Characteristic closing system price on February 14, 2018, of $12.49, the offer equates to a cost of $53.61 per CREIT system, a 23.1% premium to the CREIT closing system rate on February 14, 2018.

The total factor to consider consists of about 58% in Choice Properties systems and 42% in cash. CREIT unitholders will have the capability to choose whether to get $53.75 in money or 4.2835 Option Properties units for each CREIT system held, subject to proration. The maximum amount of cash to be paid by Choice Characteristic will be around $1.65 billion, and around 183 million units will be released, based upon the completely diluted number of CREIT units exceptional.

CREIT’s board of trustees has actually recommended unitholders vote in favour of the deal. Choice Characteristic’ board has unanimously figured out that the offer remains in the very best interests of Choice Properties.