{"id":316837,"date":"2024-04-09T16:45:12","date_gmt":"2024-04-09T21:45:12","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=316837"},"modified":"2024-04-10T10:13:01","modified_gmt":"2024-04-10T15:13:01","slug":"ballys-should-sell-tropicana-rights-says-cbre-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/ballys-should-sell-tropicana-rights-says-cbre-analyst\/","title":{"rendered":"Bally\u2019s Should Sell Tropicana Rights, Takeover Unlikely, Says Analyst"},"content":{"rendered":"

Bally\u2019s (NYSE: BALY) should consider selling its rights to the recently closed Tropicana Las Vegas to raise cash to support its Chicago casino hotel project, says an analyst.<\/p>\n

\"Tropicana
The Tropicana Las Vegas. An analyst said Bally’s should sell its rights to the now-closed property. (Image: New York Times<\/em>)<\/figcaption><\/figure>\n

In a new report to clients, Colin Mansfield, vice president of credit research for CBRE Credit Research, noted Bally\u2019s role in the future of the Tropicana site isn\u2019t clear. The casino hotel occupied nine acres, which is slated to be used for a Major League Baseball (MLB) stadium assuming the Oakland Athletics (A\u2019s) execute a move to Las Vegas. The venue is scheduled to be demolished<\/a> in October.<\/p>\n

It is a net-negative carrying asset for Bally\u2019s, but the attractiveness and potential value of the site has gone up since the time of purchase, in our opinion,\u201d Mansfield told clients.<\/p><\/blockquote>\n

In April 2021, Bally\u2019s announced the $150 million purchase of Tropicana\u2019s nonreal estate assets and the start of a 50-year lease costing $10.5 million annually with Gaming and Leisure Properties (NASDAQ: GLPI), which owns the 35 acres associated with the now-shuttered Strip venue. Bally\u2019s remains on the hook for that rent until it decides to make a move with its Tropicana rights.<\/p>\n

What Bally\u2019s Could Fetch in Tropicana Sale<\/h2>\n

Bally\u2019s has expressed a willingness to entertain offers for its Tropicana lease with management noting it would consider offers on any of its assets if the bids are compelling.<\/p>\n

Executives \u201ccalled out a price of $9 million per acre as a reasonable price to offload the Tropicana site, which could bring in over $300 million of proceeds,\u201d said CBRE\u2019s Mansfield.<\/p>\n

\n

While $300 million would contribute to closing an $800 million shortfall<\/a> on Bally\u2019s Chicago project, Bally\u2019s getting $300 million in a Tropicana transaction seems unlikely because it doesn\u2019t own the land. It could sell its lease rights to another entity, but that could prove tricky with the fate of the property far from guaranteed.<\/p>\n<\/div>\n

For its part, GLPI, which does own the Tropicana land, has said it would consider a sale<\/a> of that real estate. The real estate investment trust (REIT) has also previously said it could compensate Bally\u2019s should it become clear that a new casino hotel development at the Tropicana site isn\u2019t feasible.<\/p>\n

Bally\u2019s Sale Not Likely, Says Mansfield<\/h2>\n

Separate from the commentary on Bally\u2019s possibilities for Tropicana Las Vegas, Mansfield said there\u2019s a less than 50% chance the company accepts a $15 per share takeover offer from Standard General (SG).<\/p>\n

The SG offer adds to the overhang on the credit, which comes at a critical time as Bally\u2019s seeks financing to fund its large-scale Chicago development, weighs its options for the recently closed Tropicana Las Vegas, and works to improve the equity and credit narrative,\u201d Mansfield said in his report. \u201cAt the surface, we believe the SG offer creates more noise and may distract from Bally\u2019s Chicago financing efforts.\u201d<\/p><\/blockquote>\n

Mansfield\u2019s note was published on Monday, a day prior to reports surfacing that the special committee formed by Bally\u2019s to evaluate the bid is holding talks<\/a> with the suitor.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bally\u2019s (NYSE: BALY) should consider selling its rights to the recently closed Tropicana Las Vegas to raise cash to support its Chicago casino hotel project, says an analyst. In a new report to clients, Colin Mansfield, vice president of credit research for CBRE Credit Research, noted Bally\u2019s role in the future of the Tropicana site […]<\/p>\n","protected":false},"author":46,"featured_media":293784,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,81886,32093],"tags":[81897,81903,23,81966],"acf":[],"yoast_head":"\nBally's Should Sell Tropicana Rights, Says CBRE Analyst<\/title>\n<meta name=\"description\" content=\"Bally\u2019s Should Sell Tropicana Rights, Takeover Unlikely, Says Analyst.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/ballys-should-sell-tropicana-rights-says-cbre-analyst\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bally's Should Sell Tropicana Rights, Says CBRE Analyst\" \/>\n<meta property=\"og:description\" content=\"Bally\u2019s Should Sell Tropicana Rights, Takeover Unlikely, Says Analyst.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/ballys-should-sell-tropicana-rights-says-cbre-analyst\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-09T21:45:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-10T15:13:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/10\/Trop.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"562\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/ballys-should-sell-tropicana-rights-says-cbre-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/ballys-should-sell-tropicana-rights-says-cbre-analyst\/\",\"name\":\"Bally's Should Sell Tropicana Rights, Says CBRE Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-should-sell-tropicana-rights-says-cbre-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-should-sell-tropicana-rights-says-cbre-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/10\/Trop.jpg\",\"datePublished\":\"2024-04-09T21:45:12+00:00\",\"dateModified\":\"2024-04-10T15:13:01+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Bally\u2019s Should Sell Tropicana Rights, Takeover Unlikely, Says Analyst.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-should-sell-tropicana-rights-says-cbre-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/ballys-should-sell-tropicana-rights-says-cbre-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/ballys-should-sell-tropicana-rights-says-cbre-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/10\/Trop.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/10\/Trop.jpg\",\"width\":1000,\"height\":562,\"caption\":\"The Tropicana Las Vegas. 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