Caesars Entertainment has finalized the sale of the LINQ Promenade to a joint venture between TPG Real Estate and Acadia Realty Trust’s Investment Management Platform. The deal, valued at $275 million, marks a significant step in Caesars’ ongoing efforts to manage its debt.
Located between the Flamingo Las Vegas and Caesars’ LINQ Hotel + Experience, the LINQ Promenade is a bustling shopping and dining attraction. The sale, which includes the iconic High Roller Observation Wheel, does not cover the surrounding hotels. This marks a significant shift for Caesars, as the Promenade was initially developed for $550 million more than a decade ago.
While the LINQ Promenade has grown to become a key part of the Las Vegas Strip’s entertainment landscape, the sale comes as Caesars focuses on reducing its debt burden, which stands at nearly $13 billion. The company has committed to using the full $275 million from the sale to make a voluntary prepayment on a Term Loan B due in 2030.
Strategic Sale to Reduce Debt
The sale of the LINQ Promenade aligns with Caesars’ strategy to offload non-core assets to address its financial obligations. “The proceeds from the sale of non-core assets will help us pay down a portion of our $12.7 billion in debt, which is our No. 1 priority,” stated Caesars CEO Tom Reeg. The sale’s closing also signals the company’s continued focus on strengthening its financial position.
Despite the significant loss from the original development cost, the sale provides Caesars with much-needed liquidity to manage its substantial debt load. Caesars had initially developed the LINQ Promenade with a vision of attracting visitors to its integrated retail, dining, and entertainment offerings, including restaurants such as Yard House and Gordon Ramsay’s Fish & Chips. Additionally, the Brooklyn Bowl concert venue added a dynamic layer to the space.
Caesars continues to focus on its core operations, while also exploring further asset sales to ease its financial strain. The LINQ Promenade remains an integral part of the Las Vegas Strip, linking Caesars’ Flamingo and LINQ Hotel and Casino to the Caesars Forum conference center. The transaction, initially announced in October, is expected to help Caesars make further strides in reducing its debt over time.
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