MGM Growth Properties has completed the $1.06bn acquisition of Hard Rock Rocksino Northfield Park from Milstein Entertainment.
The real estate investment trust, formed by MGM in 2016 and controlled with a 70 percent stake, announced purchase of the 200,000 sq ft casino earlier this year.
“We are excited about the addition of the market leading Hard Rock Rocksino to our portfolio,” said MGM Growth Properties CEO James Stewart.
“This transaction brings further geographic diversification and is expected to generate mid to high single digit percentage accretion to AFFO.”
Alongside the venue’s 2,200 video lottery slot machines, the purchase also includes the Northfield Park harness racetrack, nicknamed ‘The Home of the Flying Turns’ and location for the annual Battle for Lake Eerie free-for-all pacing event.
MGM Growth manages ten MGM Resort properties, including Mandalay Bay, The Mirage, New York-New York, Luxor, and Excalibur, which are in turn leased back to the company to operate.
The latest acquisition will be leased to MGM Resorts for between $50m and $60m per year.
“We look forward to welcoming the Rocksino team, customers and partners into our portfolio and have entered into a new agreement with Hard Rock to continue to serve as the manager,” said Stewart.
The purchase was part funded by cash, with the remaining funds provided by MGM’s senior secured credit facility.
MGM CEO Jim Murren added that the purchase “improves the balance sheet of MGM Resorts,” adding it “provides another growth vehicle for the company” and “a different investment opportunity.”