Finalizing the deal
Churchill Downs Incorporated (CDI) has completed its sale of a piece of excess land near its Calder Casino in Florida for $291m. The leading operator of horse tracks and casinos announced the finalizing of the sale on Friday. The 115.7-acre piece of land was bought by Link Logistics, an industrial real estate subsidiary of private equity firm Blackstone. The purchase price breaks down to about $2.5m per acre.
no hitches or revisions necessary along the way
Following the sale, CDI still owns 54 acres in the Miami Garden area, the location of Calder Casino. The announcement of the sale first came in November; the transaction was completed as per the initial timeline. There were no hitches or revisions necessary along the way.
Using the sale proceeds
CDI plans to use much of the funds resulting from the sale to buy properties relating to its acquisition of Peninsula Pacific Gaming. The company announced in February that it was in the process of acquiring nearly all of Peninsula Pacific’s assets in a deal worth almost $2.5bn.
could sell another 15 or 20 acres of land in Miami Gardens
The goal of the acquisition is to expand CDI’s geographic reach and help to reinforce its role as a leader in the US historical horse racing sector. Another use of the sale proceeds is going to be the investment in replacement properties that will qualify as Internal Revenue Code §1031 transactions. CDI has noted that it could sell another 15 or 20 acres of land in Miami Gardens in the future for retail development opportunities.
Fingers in a lot of pies
CDI has had a good year to date, bouncing back nicely following COVID-19 pandemic issues. In the first quarter of the year, CDI hit a record high net revenue of $364m. Another key project in the works at the moment saw CDI allocate $200m in April to help redevelop the Churchill Downs Racetrack in Kentucky, home of the Kentucky Derby.
The company has a diverse range of assets under its portfolio. In addition to owning three gaming entertainment venues in Kentucky that contain about 3,500 historical racing machines, it has land-based casino operations in eight states. It also, of course, owns the Churchill Downs Racetrack, as well as the TwinSpires online horse racing betting brand.