GLPI to Acquire Sunland Park Racetrack & Casino in New Mexico

Written by

Share on social media

Gaming and Leisure Properties, Inc. (GLPI) has agreed to a deal to acquire the real estate assets of Sunland Park Racetrack & Casino.

The deal for the southern New Mexico property is valued $183.8 million, at an initial 8.2% cap rate. It also includes annual rent on the property lease increasing at 2.0% per year.

Strategic Gaming Management, an acquisitive operator of U.S. casino assets, will oversee the lease. The acquisition adds a fourth asset to Strategic Gaming’s existing triple-net master lease agreement with GLPI.

The acquisition, which is expected to close on October 15, would represent GLPI’s second property in New Mexico.

GLPI Talks Up Diversified Portfolio With Sunland Park

Peter Carlino, chairman and CEO of GLPI, said the deal further strengthens its position in the land-based casino market.

“Through the acquisition, we are again diversifying our property portfolio, while again supporting the growth strategy of an existing tenant, as we deepen our relationship with Strategic Gaming, a dynamic and growing gaming operator,” Carlino said.

“This accretive transaction further strengthens GLPI’s reputation as the gaming landlord of choice.”

Opened in 1959, Sunland Park occupies an area measuring approximately 157 acres. Its on-site 25,000-square-foot gaming floor features 738 slots and 12 electronic gaming tables.

The property also houses a one-mile thoroughbred and quarter horse racetrack with seating for 733 spectators. Other amenities include a 600-person ballroom, simulcast wagering area and a 78-room, third-party hotel.