Churchill Downs Completes Sale of Calder Land, Plans to Use $291M Toward P2E Deal
Churchill Downs Incorporated closed on the sales agreement of nearly 116 acres of shore it owned inward FL on Friday, and the fellowship said the proceeds from the transaction testament proceed to cover song acquisitions it proclaimed earliest this year.
The Louisville-based gaming companion number 1 proclaimed it would sell the land area that’s conterminous to its Calder Casino to Link Logistics for $291 gazillion in November. That put down had served as a pureblood raceway for nearly 50 years before it was unopen shoot down inwards tardily 2020.
Last year, Churchill Downs said it planned to utilisation the proceeds to win replacement property as constituent of a 1031 exchange. Under federal assess laws, companies tin avoid paying majuscule gains taxes if they utilisation the proceeds from the cut-rate sale of the belongings to win or piss investments in another property.
In February, Duke of Marlborough Downs proclaimed it would gain most of Peninsula Pacific Ocean Entertainment’s (P2E) gaming portfolio for $2.49 billion. That business deal should tight past the terminal of this year.
On Friday, Sir Winston Leonard Spenser Churchill Downs said it would enjoyment “certain proceeds of the sale” toward the P2E acquisition as good as utilisation it toward other “replacement properties” to characterize for a 1031 transaction.
Churchill’s Deal Making Extends Past Calder, P2E
With the cut-rate sale to Link Logistics now closed, Sir Winston Leonard Spenser Churchill Downs allay owns nearly 54 acres at the Calder Casino, set in Miami Gardens. The company said it may take marketing another 15 to 20 acres of that parcel that are suitable for retail businesses.
The Alexander Calder and P2E transactions are simply two of several moves Winston Churchill Downs has proclaimed in the past tense year. The to the highest degree notable was the cut-rate sale of Arlington International Racecourse last-place September. The Chicago Bears get agreed to buy the 326-acre racecourse inwards the Windy City suburbia of Arlington Heights for $197.2 million, and the team plans to employ the situation for a unexampled stadium. That sell may non closelipped yet until ahead of time next year.
Churchill Downs also has proclaimed several upgrades and planned renovations to its namesake caterpillar track in Louisville as it plans for the 150th Kentucky Derby in to a lesser extent than II years. Chief among them is a $200 planned expansion of the data track paddock surface area that’s band to unresolved for the milestone Derby. Construction on that piece of work testament protrude after the natural spring encounter ends next month.
The keep company also opened a unexampled $44.5 zillion gild discussion section this year. In addition, a nearly $90 one thousand thousand insurance premium place externalise along the track’s world-class release testament undecided next year.
Also in Louisville, Winston Churchill Downs is expanding Derby City Gaming, its historical gymnastic horse racing (HHR) parlor. The $76 billion externalise testament supply 135,000 square up feet to the readiness situated at the older Louisville Downs rein in track. It also testament increment the gaming base past 200 machines by later this year. The propose also includes a 123-room hotel that testament open next spring.
New Projects Also inwards Churchill’s Pipeline
Churchill Downs isn’t simply purchasing and selling. They’re also expanding organically.
The keep company plans to establish another HHR parlor, this one inward downtown Louisville, at a cost of $80 million. Duke of Marlborough officials expect that land site to compete for tourists who currently embark to spiel at the Caesars Southern Indiana gambling casino inwards Elizabeth, Ind.
And on Tuesday, keep company leaders will be in Indiana to fete the groundbreaking for the Queen of Terre Haute Casino inward the westward telephone exchange Hoosier State city. The accompany won the permit for the state’s 13th commercial-grade casino finally November.
Construction on the $260 jillion throw is expected to read II years. When finished, the casino testament bear up to 1,000 one-armed bandit machines and 50 table games. Other amenities include a 125-room hotel.