Caesars Entertainment is a gambling corporation spanning several nationalities, has closed the chapter on the real estate assets that it owned with Harrah’s Philadelphia. The sale was completed with a company called VICI Properties who have subsequently become the owner of the same.
Assets were put on sale and finally, the transaction was completed with a figure of $82.5 million. The final price was reduced from former levels as certain aspects and terms of the acquisition were negotiated and modified accordingly between the two parties. The venue will remain for some time and would be depicted as part of the chain of Caesar’s network as well as bear the brand of Harrah’s. This was financially advised upon to maintain the value of the brand. An application was made by Harrah’s Philadelphia recently for getting sports betting license from Pennsylvania Gaming Control Board.
Lease modification terms have been added to other lease agreements such as those existing for Caesars Palace in Las Vegas as well as other properties that the corporation owns in Las Vegas. With the changes, the lease terms will align to precedents of other markets and terms that are included in long-term agreements of properties. The changes include rent payments that Caesars was paying to VICI or the increase percentage that was due the end of the term. The terms also include development plans that Caesars has in the coming years for the east side of the Las Vegas strip.
The President and CEO of Caesars Entertainment commented that the transaction that was done with VICI helps to improve the financial flexibility of the corporation and reduce the volatility of rent payments in future. It also demonstrates the commitment of the company to create value for the shareholders. The final days of 2018 were very busy for the divisions of the corporation, especially the one that worked on the Linq property that the company owns in Las Vegas. The aim is to attract the millennials and what this particular demographic would find attractive. The company has started a new venture called Fan Cave whereby different gaming and entertainment experience is planned, hopefully, something that would attract the new millennials. It is dubbed as casino of the future and comprises of an undertaking that is 44000 square foot. It would serve as a lab that would offer trial grounds for innovative gaming and entertainment technology. If these prove successful they would be added to the other existing venues.
Experimental spaces in Fan Cave would include virtual reality games, digital bar, slots based on skills, LED screens and other amenities.
Visitors will partake in sports betting, tournaments that would be held regularly with leaderboards made visible. Rent options would average around $1000 to $1500 that a customer can take on per head for beverages and food included.