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Bally’s executes sale-leaseback on newly received Freedom Ce…


Days after purchasing the 30-acre Freedom Heart printing website online, Bally’s has offered the land to a Chicago actual property funding company, leasing it again for 99 years and elevating as much as $500 million to lend a hand construct its proposed $1.74 billion Chicago on line casino complicated.

Oak Boulevard Actual Property Capital received the River West assets Monday for $200 million within the sale-leaseback deal, with a dedication to offer as much as $300 million extra in more investment to increase the on line casino.

“It’s simply every other step ahead in ensuring that the mission is absolutely funded,” Bally’s Chair Soo Kim stated Monday.

A spokesman for Oak Boulevard declined to remark.

The Rhode Island-based on line casino corporate purchased the printing plant website online for $200 million Friday from Nexstar Media Workforce. The Dallas-based TV station proprietor received the Freedom Heart website online in 2019 as a part of its $4.1 billion purchase of Tribune Media — the previous broadcast father or mother of Tribune Publishing.

Bally’s stated previous this month it deliberate to sell the land and lease it back to lift cash for the proposed on line casino. As a part of the sale-leaseback deal, Bally’s entered right into a 99-year flooring rent with Oak Boulevard, with 10 choices to resume for twenty years every, consistent with a information free up Monday.

Whilst the companies didn’t reveal the precise phrases, the preliminary rent is calculated to yield an 8.5% annual capitalization charge for Oak Boulevard, consistent with the discharge.

“With this new actual property partnership, Bally’s has considerable liquidity available to fund Bally’s Chicago with no need to get admission to the capital markets,” Bally’s CFO Bobby Lavan stated within the free up.

Based in 2009, Oak Boulevard Actual Property Capital focuses on sale-leasebacks and has $18.6 billion of belongings underneath control, consistent with its website online. The company used to be received remaining 12 months for $950 million through Blue Owl Capital, a New York-based selection funding control team.

Bally’s entered right into a sale-leaseback settlement in July with Gaming and Recreational Houses for its Bally’s Tiverton On line casino & Lodge in Rhode Island and the Exhausting Rock Lodge & On line casino in Biloxi, Mississippi, that may web the corporate $635 million, which it additionally plans to make use of to fund the Chicago on line casino building. That deal is predicted to near in January.

Bally’s owns and manages 15 casinos throughout 10 states. It made its entree into Illinois in June 2021 with the $120 million acquisition of Jumer’s On line casino & Lodge in Rock Island, which it renamed Bally’s Quad Towns.

In Might, Bally’s won a heated competition to construct the Chicago on line casino, which is predicted to generate $200 million in annual tax earnings for the town.

rchannick@chicagotribune.com


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