CHICAGO , Nov. 21, 2022 /PRNewswire/ — Bally’s Corporation (NYSE: BALY ) today announced that it has closed a transaction with one of Chicago’s leading real estate private equity firms (the “Investor”), whereby such Investor acquired for $200 million , the approximately 30-acre Tribune Publishing Center site (the “Land”) on which Bally’s Chicago will be built. Pursuant to the terms of the parties’ agreement, Bally’s entered into a ground lease with the Trader to rent back the particular Land.
The ground lease includes an initial 99-year term, followed by ten separate 20-year renewals at Bally’s option. As part of the transaction, as specified construction milestones are completed, at Bally’s request, the Investor will fund up to an additional $300 million for Bally’s Chicago’s development through the ground lease structure. The particular initial rental rate under the ground lease is calculated to yield the Buyer an 8. 5% annual capitalization rate, adjusting to a 7. 0% annual capitalization rate upon the receipt by Bally’s of certain development entitlements and gaming approvals. The rent is also subject to periodic CPI increases.
Soo Kim , Chairman of the Board of Bally’s, said, “We are excited to be partnering with one associated with Chicago’s top real estate private equity firm as we progress along with building our $1. 7 billion flagship property in the Chicago market. We continue to demonstrate our own commitment in order to delivering a world class entertainment facility that supports Chicago’s economy and community. ”
Bobby Lavan , Chief Financial Officer of Bally’s, said, “This transaction is an important step in our advancement plan for Bally’s Chi town as we continue to work towards opening the particular temporary casino in mid-2023. With this new real estate partnership, Bally’s has ample liquidity on hand to fund Bally’s Chicago without needing to access the capital markets. ”
Bally’s has the particular option to repurchase the Land from the Investor at a fixed capitalization price during years four through eight associated with the rent term. In addition, if particular milestones are not achieved or Bally’s defaults underneath the lease, the Investor may require Bally’s in order to reacquire the particular Land at a specified price.
About Bally’s Chicago
Bally’s Chicago, il is the $1. seven billion destination casino, amusement and hotel offering that will showcase “The Best of Chicago ” arts and culture, food plus sports, and curated dining and enjoyment experiences. Located on the 30-acre Chicago Tribune Publishing Center at the intersection of Chi town Avenue plus Halsted Street , Bally’s Chicago will transform this particular currently underutilized site into a major economic driver for the city.
Among other features and amenities, Bally’s Chicago, il will include 3, 400 slots, 170 table games, 10 food and beverage venues, a 500-room resort tower with rooftop bar, a 3, 000 seat / 65, 000 square foot entertainment center, the 20, 000 square foot exhibition, outdoor music venue, and outside green space including a good expansive public riverwalk with a water taxi stop. The project furthermore provides Bally’s with the particular exclusive right to operate a temporary casino with regard to up to three years while the permanent casino resort is constructed.
For more information upon Bally’s Chicago , visit www.ballyschicago.com .
About Bally’s Corporation
Bally’s Corporation is a global casino-entertainment company along with a growing omni-channel presence of Online Sports Betting and iGaming offerings. It currently owns and manages 15 casinos across 10 states, the horse racetrack in Colorado and has access to OSB licenses in 18 states. It also owns Bally’s Interactive International, formerly Gamesys Group, a leading, global, online video gaming operator, Bally Bet, the first-in-class sports betting platform and Bally Casino , a growing iGaming platform.
With ten, 500 employees, Bally’s on line casino operations consist of approximately 15, 000 slot machines, 600 table games plus 5, 300 hotel rooms. Upon completing the construction of a temporary casino facility in Chi town, IL and a land-based casino near the Nittany Mall in State College, PA , Bally’s will own and manage 17 internet casinos across 11 states. Its shares trade on the New York Stock Exchange beneath the ticker symbol “BALY”.
Chief Financial Officer
SOURCE Bally’s Corporation