Tag Archives: cashing

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).

Cashing Out: KBS Planning to Liquidate Post-Recession Home REIT

KBS Tradition Partners Apartment or condo REIT Cuts Deal to Offer First 4 of Remaining 10 Characteristics

Crystal Park at Waterford in Frederick, MD, is one of four properties being sold to Elite Capital.
Crystal Park at Waterford in Frederick, MD, is among 4 properties being sold to Elite Capital. KBS Legacy Partners Apartment REIT has decided it’s time to cash out and sell the staying multifamily properties it purchased through early 2014. The California-based non-traded REIT has currently cut separate agreements to sell four of them and is seeking approval of the sale from investors.

Funds affiliated with Houston-based Elite Street Capital consented to pay $218.9 million for the residential or commercial properties containing 1,273 units, representing a rate of $171,956/ system. The sale of the portfolio is likewise contingent on shareholder approval of the KBS REIT’s strategy of liquidation.

The homes to be offered as part of the Elite trade are Legacy at Valley Cattle ranch, 504 systems in Irving for $68.5 million purchase price; The Residence at Waterstone, a 255-unit complex in Pikesville, MD, for $60.1 million; Crystal Park at Waterford, a 314-unit complex in Frederick, MDselling for $45.9 million; and Lofts at the Highlands, a 200-unit complec in St. Louis costing $44.4 million.

KBS Tradition Partners Home REIT kept in mind that there are no constraints on it to negotiate with other prospective buyers and attempt to offer the residential or commercial properties for a higher rate.

The REIT likewise owns other apartment holdings in the Charlotte, Chicago, Minneapolis and Greenville, SC, markets.

The REIT’s sponsor, KBS Realty Advisors, may not be done seeking to reshape its post-recession period purchases. According to several news reports, KBS Realty Advisors is said to be in talks with the asset-management arm of Singapore-based Keppel Corp. to form a joint endeavor for listing as a REIT later this year on the Singapore stock exchange.

It was reported that the new company would have a preliminary portfolio of close to a dozen residential or commercial properties, including office complex in Seattle, Houston, Denver and other United States cities.