Caesars Sells Reno Property For $50 MillionNew Owner Will Turn Harrah's Reno Into "Non-Gaming Property" |
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In an effort to put regulators’ concerns over a possible monopoly to rest with its upcoming merger with Caesars Entertainment, Eldorado Resorts sold one of its two Louisiana casinos earlier this week. Caesars followed suit Wednesday with a sale of one of its Reno properties.
According to the Reno Gazette-Journal, Caesars confirmed that it is selling Harrah’s Reno to an affiliate of CAI Investments, Reno City Center LLC, for $50 million.
Harrah’s Reno was a fixture of downtown Reno. It launched more than 80 years ago and started out as a bingo parlor before William Harrah transformed it into one of his first casinos for his eventual casino company, Harrah’s Entertainment. Harrah’s was the first gambling company to be listed publicly on the New York Stock Exchange.
For the last few years, Caesars has been leasing Harrah’s Reno from VICI Properties. VICI will receive 75 percent of the sale, while Caesars will take the remaining $12.5 million.
It is being reported that once the sale is finalized, the property will eventually cease its gaming operations. For the first half of the year, Caesars will lease the property to the CAI affiliate and Harrah’s will continue to be a part of the Caesars portfolio.
After the deal is approved by regulators, Caesars will hand over the property to the new owner, which will turn the property “into a mixed-use, non-gaming property.”
“The sale of Harrah’s Reno demonstrates our ability to continuously work constructively with our tenants to improve our individual businesses,” said President and COO of VICI Properties John Payne in a statement. “This disposition will allow VICI to optimize the quality of our real estate portfolio and redeploy the proceeds toward other attractive growth opportunities while maintaining the existing financial terms of the Non-CPLV Master Lease with Caesars.”
With the official approval of the $17.3 billion merger between Caesars and Eldorado expected to happen in the next several months, it is likely that the two companies will continue to sell assets in the months leading up to it.
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