Las Vegas-based Caesars Entertainment is selling its Las Vegas Strip shopping district, LINQ Promenade. Buyers Acadia Realty Trust and TPG Real Estate are to pay $275 million for the popular retail and entertainment area. The transaction is expected to close by the end of the year.
Caesars operates LINQ Casino Hotel and the Flamingo, which are adjacent to the Promenade. Caesars will keep the High Roller observation wheel, which adjoins the shopping district.
Despite being one of the largest U.S. gambling operators, Caesars has a huge $12 billion debt burden. As well as this sale, it recently sold the long-running World Series of Poker brand to NSUS Group, the company behind online poker giant GGPoker.
“The sale of the LINQ Promenade represents an accretive, non-core asset sale that will accelerate our debt reduction goals,” said Caesars CEO Tom Reeg in a company statement.
“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.”
The Sale
Caesars opened the LINQ Promenade in 2013. The year after, the nearby Quad casino resort was renamed the LINQ to fit the new attraction.
Today, it includes a few shopping outlets, but mostly focuses on dining options and attractions. The Promenade has a zip wire, the LINQ High Line, a Gordon Ramsay Fish & Chips, an O’Shea’s Irish Pub, and an Ice Bar, among dozens of other venues.
It also has the 550-foot-high High Roller observation wheel, which is the second-biggest in the world. And you can get married on it, apparently.
The Outlook
Caesars Entertainment currently runs around 50 casino hotels across the U.S. That includes nine on the Las Vegas Strip alone, and six more in the wider Nevada area.
The sale of the LINQ Promenade is part of a wider focus from the company on trimming down its business to pay off its $12 billion debt pile. As well as the $275 million sale of the LINQ Promenade, the company recently sold its World Series of Poker brand for $500 million. The first $250 million of that payment was received this week, Caesars said.
Although Caesars does make consistent yearly profit, its total debt also recently rose year-on-year, according to the latest financial data. On the other hand, it does also have $802 million in cash on hand, and is expected to pull in north of $10 billion in revenue this financial year.
CEO Tom Reeg has not been shy about his desire to sell off the company’s non-core assets, and more sales are possible in the future.
David is an online casino expert who specializes in online slots and boasts over 10 years experience writing about iGaming. He has written for a wide range of notable publications, including eSports Insider and WordPlay Magazine.
David graduated Derby University with a BA Degree in English Literature and Creative Writing.