GTA Bundle Purchase Price Unveiled

Published: January 23, 2018 12:56 pm EST

On Tuesday (January 23), the Great Canadian Gaming Corporation announced what the purchase price was to acquire the particular gaming assets that were offered within the Greater Toronto Area gaming bundle.

In its release, the contents of which appear below, Great Canadian states that the purchase price of the GTA Bundle was $170 million.

The contents of the release appear below.


Great Canadian Gaming Corporation (TSX:GC) (‘Great Canadian’) and Brookfield Business Partners L.P. (NYSE:BBU) (TSX:BBU.UN) (‘Brookfield Business Partners’) together with its institutional partners (collectively, ‘Brookfield’) announced today that they, through their partnership Ontario Gaming GTA LP (‘the Partnership’), have successfully completed the acquisition of certain gaming assets in the Greater Toronto Area (the ‘GTA Bundle’) for a purchase price of approximately C$170 million.

The Partnership has signed a casino operating and services agreement (‘COSA’) with the Ontario Lottery and Gaming Corporation (‘OLG’) to take over the day-to-day operations of the gaming facilities in the GTA Bundle.

The GTA Bundle is the largest award by OLG as part of the modernization of its casino operations. In 2016, its three facilities, OLG Slots at Woodbine, OLG Slots at Ajax Downs and Great Blue Heron Casino, located on the Mississaugas of Scugog Island First Nation lands, generated gross gaming revenue of over C$1 billion. These facilities have a combined total of over 4,000 slot machines, 60 table games and employ more than 2,200 staff. In accordance with the terms of the COSA, the Partnership will have the exclusive right to operate these facilities for a minimum period of 22 years.

Going forward, the Partnership intends to undertake an ambitious growth strategy to enhance the guest experience. This modernization and development (subject to approvals) of the facilities is intended to include enhanced gaming offerings and integrated property expansions that will incorporate leading world-class amenities such as state-of-the-art meeting and event facilities, hotels and premier entertainment venues. The Partnership intends to work closely with stakeholders as it enhances and transforms the properties located in the GTA Bundle.

(Great Canadian Gaming Corporation)

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Comments

Once again politicians in Ontario have no business sense, only bureaucratic paycheques.
The last casino "license"-only in Pennsylvania - no assets - sold for $440 million.
And, Caesars just purchased the track and casinos in Indiana for $1.7 billion.
The Toronto market alone will top the above two!

Sell $1 Billion annual gross for one time $170 million. Makes as much sense as the lease on the 407 that tax payers too built.

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