Home News Bally’s raises up to $500M for Chicago casino in sale-leaseback

Bally’s raises up to $500M for Chicago casino in sale-leaseback

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Days after purchasing the 30-acre Freedom Center print site, Bally’s sold the land to a Chicago real estate investment firm, leased it for 99 years, and built the proposed $1.74 billion Chicago casino complex. raised up to $500 million to

Oak Street Real Estate Capital acquired the River West property for $200 million on Monday and pledged to provide up to $300 million in additional funding to develop the casino.

“This is another step forward in ensuring the project is fully funded,” Bally chairman Soo Kim said Monday.

An Oak Street spokeswoman declined to comment.

The Rhode Island-based casino company bought a printing plant site from Nexstar Media Group for $200 million on Friday. The Dallas-based television station owner acquired the Freedom Center site in 2019 as part of that. Acquires Tribune Media for $4.1 billion — Former broadcast parent at Tribune Publishing.

Bally’s announced earlier this month that sell land and lease back Raise funds for proposed casino. As part of a sale-leaseback deal, Bally’s has entered into a 99-year ground lease with Oak Street, each renewable for 20 years, according to Monday’s news release. Contains 10 options.

The companies did not disclose specific terms, but the release said the first lease was calculated to bring Oak Street’s annual capitalization rate to 8.5%.

“With this new real estate partnership, Bally’s has sufficient liquidity on hand to fund Bally’s Chicago without the need to access the capital markets.

Founded in 2009, Oak Street Real Estate Capital specializes in sale-leasebacks and has $18.6 billion in assets under management, according to its website.The company was acquired last year $950 million It is by Blue Owl Capital, a New York-based alternative investment management group.

Bally’s entered into sale-leaseback agreements with Gaming and Leisure Properties in July for Bally’s Tiverton Casino & Hotel in Rhode Island and Hard Rock Hotel & Casino in Biloxi, Mississippi. Used to fund casino development in Chicago. The deal is expected to close in January.

Bally’s owns and manages 15 casinos in 10 states. In June 2021, he acquired Jumer’s Casino & Hotel in Rock Island for $120 million, renamed it Bally’s Quad Cities and expanded to Illinois.

May, Bally’s won the heated competition Building a Chicago casino is expected to generate $200 million in annual tax revenue for the city.

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