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Penn National will enter into a lease agreement with VCI Properties Inc. in New York to operate the casino. VCI, which owns 20 other gaming facilities, announced it will acquire Margaritaville’s land and real estate assets for $261 million. Penn National’s lease will have an initial annual rent of $23 million and an initial term of 15 years, with four 5-year renewal options. “We are pleased to partner with VCI Properties Inc. to structure this tuck-in acquisition with Bossier City’s newest casino resort, which is consistent with our criteria for transactions that are accretive to free cash flow, strategically diversify our revenue and operating base and present well-defined paths to the realization of significant synergies,” Timothy J. Wilmott, CEO of Penn National, said in a statement. The deal is expected to close in the second half of 2018, pending approval from the Louisiana Gaming Control Board. Margaritaville Resort Casino, which was built in 2013, has 26,500 feet of casino space that includes 1,215 slots and 50 tables. It has 395 hotel rooms, 9,500 square feet of meeting space, six restaurants and a 1,000-seat theater.
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