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Caesars offloads Harrah’s Reno to CAI Investments for $41.5m


Caesars Entertainment has completed the sale of its Harrah’s Reno Hotel and Casino  property in Nevada to an affiliate of real estate development business CAI Investments.

Under the agreement, which Caesars brokered in partnership with real estate investment trust Vici Properties, the CAI affiliate will pay a total of $41.5m to take ownership of the facility.

Proceeds from the sale will split so that Vici will receive 75% and Caesars the remaining 25%. The annual rent payments under the regional master lease between Caesars and Vici will remain unchanged.

The deal comes after Caesars last month also agreed to sell its Harrah’s Louisiana Downs Casino, Racing & Entertainment property to Rubico Acquisition for $22.0m.

Caesars Entertainment Inc. is the new operating name for the combined Caesars Entertainment Corporation and Eldorado Resorts business.

Eldorado in July completed its $17.3bn acquisition of Caesars, in a deal that saw the two parties create what they said is the largest casino and entertainment business in the US.

The deal was subject to a range of approvals, with state regulators submitting requests in order for the acquisition to proceed, including requirements for Caesars and Eldorado to sell some properties for competition reasons.

The Nevada Gaming Control Board and Gaming Commission gave its approval to the acquisition agreement in July without any such request.

The casino sale also comes after Caesars this week agreed terms on a deal for its Caesars UK Holdings subsidiary to acquire the entire William Hill business for approximately £2.9bn.

Caesars and investments giant Apollo Global Management had both put forward separate cash proposals with the aim of acquiring William Hill, but Caesars had warned any deal with Apollo would see it terminate certain rights associated with its joint venture with the bookmaker in the US.