- After 5.5 year transformation, Greektown property is poised for next level of growth with national longtime successful casino operator
Rock Ventures plans redeployment of capital into its Detroit real estate and business portfolio — continuing its mission of work dedicated to creating opportunity, jobs and growth in the Motor City
Following a strategic assessment of its business portfolio, JACK Entertainment LLC (“JACK Entertainment”) today announced that it has entered into a contract to sell Greektown Casino-Hotel for $1 billion cash, pending regulatory approval. Under the terms of the agreements, Penn National will acquire the operating assets of Greektown for approximately $300.0 million, and VICI Properties will acquire the land and real estate assets of Greektown, for approximately $700.0 million. Dan Gilbert and his family of companies are targeting the capital proceeds from the sale for investment in Detroit real estate and business development.
“We purchased Greektown Casino-Hotel as a part of our overall economic development strategy in Detroit,” said Matt Cullen, Chief Executive Officer of JACK Entertainment. “After investing hundreds of millions of dollars of capital into redesigning and remodeling the property, as well as working with our outstanding team members and their unions to dramatically improve operations and customer service levels, Greektown Casino-Hotel is positioned for further future success. We are confident that Penn National is the ideal steward to take Greektown to the next level of growth. We chose to sell to Penn National, in large part, due to its strong culture and the quality of its leadership and team. They are a professional operator that Greektown team members will enjoy working with as they continue to deliver excellent service to our guests.”
The transaction requires regulatory approval, both at the federal and state levels.
“Our purchase of Greektown Casino-Hotel five and a half years ago, soon after its bankruptcy, allowed us to work with the great team at the property to create a winning culture and a vibrant business,” said Dan Gilbert, Chairman of JACK Entertainment and Founder and Chairman of Rock Ventures. “The sale to Penn National and VICI Properties will allow that strong trajectory to continue and provide additional capital to continue our strategic investments in our Detroit real estate and business initiatives.”
Subsequent to regulatory approval for the transaction, JACK Entertainment will work with Penn National to ensure a smooth transition for all guests and team members. During the transition, the property will remain open for business as usual. At closing, Greektown team members will transition with compensation and benefit packages at least as favorable as they currently enjoy. All unions that currently represent Greektown team members will be recognized and all collective bargaining agreements will be assumed by Penn National at closing.
The sale is expected to be finalized sometime in 2019. JACK Entertainment is continuing a strategic assessment for its remaining gaming properties.