Caesars to sell the LINQ Promenade for $275M
Through a newly signed agreement, an American hotel and casino entertainment company, Caesars Entertainment, will sell its LINQ Promenade to a joint venture formed between TPG Real Estate and Acadia.
The sale will include only LINQ Promenade, an outstanding area of shopping, dining, and entertainment. With this move, Caesars aims to reduce its $12.7 billion debt. Caesars will keep ownership of nearby attractions, including the LINQ and Flamingo casino hotels and the High Roller observation wheel.
Caesars CEO Tom Reeg commented:
“The sale of the LINQ Promenade represents an accretive, non-core asset sale that will accelerate our debt reduction goal. I want to thank all the team members and tenants of the LINQ Promenade for their partnership over the last 10 years and wish them continued success. By the end of this year, we will have reduced debt by 25 percent in absolute numbers since we closed the Caesars transaction (in 2020).”
The sale is still pending regulatory approval and is expected to be finalized in Q4 2024.
Caesars’ Q3 revenues
Caesars Entertainment saw a slight decline in its Q3 revenues and income from Las Vegas properties.
Tom Reeg said:
“Regional segment operating results were negatively impacted by new competition, construction disruption, and difficult comparisons versus the prior year. Caesars Digital set a new all-time quarterly record for Adjusted EBITDA driven by over 40% growth in net revenues.”
Caesars Palace, Harrah’s, Horseshoe, Paris, and the Cromwell Total net revenues dropped by 1.3% to $3.2 billion, and net income dropped by 10.4% to $696 million.