Caesars Accelerates Debt Reduction Goals with LINQ Promenade Sale
The leading casino entertainment company with a solid presence across the United States, Caesars Entertainment, announced it has entered into a definitive agreement to sell one of its Las Vegas assets.
Caesars Agrees to Sell the LINQ Promenade
Details regarding the sale emerged Tuesday with the company confirming its intention to divest the LINQ Promenade, its shopping, dining and entertainment district at the heart of the Las Vegas Strip. Caesars entered into an agreement to sell the strategic assets to a joint venture between Investment Management Platform of Acadia Realty Trust and TPG Real Estate.
The recently announced acquisition has a price tag of $275 million. Importantly, the completion of the acquisition is contingent on the relevant regulatory approvals as well as closing conditions. According to Caesars, the strategic sale is expected to close during the fourth quarter of this year.
The company confirmed that it was represented by Latham & Watkins LLP and Brownstein Hyatt Farber and Schreck, LLP for the transaction. On the other hand, TPG Real Estate and Investment Management Platform of Acadia Realty Trust benefitted from the counsel of Kirkland & Ellis LLP for this particular transaction.
The Company Will Leverage the Non-core Asset Sale for Debt Reduction
The strategic move comes after Caesars announced earlier this year that it plans to sell its intellectual property rights to the World Series of Poker (WSOP) to NSUS Group Inc. Confirmed back in August, the sale of WSOP brand has a price tag of $500 million of which $250 million will be in cash.
In that line of thought, the sale of the WSOP brand in combination with the divestment of the LINQ Promenade is expected to bring a sum of $525 million. Undoubtedly, Caesars can leverage the sum to its advantage, and this is exactly what the company’s boss confirmed.
“The sale of the LINQ Promenade represents an accretive, non-core asset sale that will accelerate our debt reduction goals.“
Tom Reeg, CEO of Caesars Entertainment
Tom Reeg, Caesars’ CEO, commented on the sale of the LINQ Promenade, explaining that the divestment of this non-core asset will benefit the company’s debt reduction objectives. “I want to thank all the team members and the tenants of the LINQ Promenade for their partnership over the last 10 years and wish them continued success,” he added.
It’s important to note that the sale of the LINQ Promenade includes only the boutiques and retail outlets and not the LINQ Hotel itself. The shopping, dining and entertainment district on the Las Vegas Strip has more than 35 retail outlets and restaurants.
