Strategic Gaming Management has closed the $301 million acquisition of a racetrack and casino, before immediately transferring the property on.
The acquisition of Sunland Park Racetrack & Casino by Strategic Gaming Management (SGM) saw the company immediately sell the property on to Gaming and Leisure Properties in a sale-leaseback transaction. The $301 million transaction is the third such acquisition to take place in the last two years as SGM seeks to build its portfolio of assets in the casino space.
“With the acquisition of Sunland, we are well on our way to our goal of being a scale operator of regional assets with rich histories, competitive moats, and very strong and loyal customer bases,” said J. Grant Lincoln, the Company’s founder and CEO.
“We will continue to invest in our assets and thoughtfully grow our platform while continuing to pursue opportunities that meet our strategic plans. We welcome the incredible Sunland Park team to the Strategic family and look forward to many years of success together.”
Sunland Park is home to 738 slots and 12 electronic gaming tables across 25,000 square feet of entertainment space, as well as a one-mile Thoroughbred and Quarter Horse track with a 733-seat stadium. The facilities allow it to play host to the Sunland Park Derby, held on its 157 acres.
More changes at Strategic Gaming Management
As well as the acquisition, SGM announced that the former Chief Financial Officer of Golden Entertainment, Matthew Flandermeyer, will be stepping into the role of CFO of Strategic Gaming Management, effective immediately.
“To me, Strategic represents an incredible opportunity for growth, which I clearly recognize from prior experience,” said Flandermeyer. “I am excited to collaborate with Grant and the team, building on what they already have in place and contributing to the growth that lies ahead.”
The company also announced that Fred Heinrich would become the President of Sunland Park, also effective immediately. The role will see Heinrich oversee operations and direct strategic aspects of the business
“I am really excited to work with Grant and the wonderful team that exists here at Sunland, as well as the surrounding communities in this new role,” he said. “I am sure we can do remarkable things together and look forward to the next chapter for this storied property.”
Featured image: Wikimedia Commons, licensed under CC BY-SA 3.0
