Gaming and Leisure Properties, Inc has announced that it has acquired land under the Hard Rock Casino, Illinois from an affiliate of 815 Entertainment for total consideration of $100 million.

The company has also announced, simultaneously with the acquisition, that it has entered a long-term lease (99 years) with the aforementioned seller. The initial annual rent for the ground lease is $8.0 million, subject to a 2.0% rise per annum.

Further, the real estate company specializing in property leased to gaming operators, has committed to providing up to $150.0 million of development funding through a senior secured delayed draw loan. Any borrowings under the loan will have interest charged at 10%. GLPI will have first right of refusal on any building improvements of the Hard Rock Casino if there is a future decision to sell them once completed.

The Hard Rock Casino in Rockford, Illinois features in-person and online sportsbooks, a 60,000 sq. ft. gaming floor with 50 table games and 1,250 slot machines. The project is not yet complete, with $120 million spent on development to date and a projected budget of $358 million.

The Illinois online sports betting market is the second largest in the United States, sitting ahead of New Jersey but behind New York.

Peter Carlino, GLPI’s Chairman and CEO, commented in a release: “Our agreements with 815 Entertainment will allow GLPI to expand its footprint with the addition of a new ground lease, a new tenant, and a commitment to provide potential funding. We believe this is an attractive ground lease transaction for our shareholders as the strong initial results at 815 Entertainment’s temporary facility demonstrate the strength of the location and the depth of the market.”

He continued: “The Hard Rock brand is world renown and will support and solidify the new casino’s position as a tourist destination and entertainment venue. Hard Rock is the property manager and an equity investor in 815 Entertainment, bringing its world-class management team to the project. The overall transaction structure makes $250 million available to 815 Entertainment to invest in the project and reflects GLPI’s creativity in crafting a comprehensive construction financing solution. We look forward to our relationship with 815 Entertainment.”

Jon Lucas, Chief Operating Officer for Hard Rock International added: “Hard Rock’s incredible financial strength and development trajectory is only made stronger with great partners like GLPI and 815 Entertainment. We are really looking forward to opening another world-class entertainment property with Hard Rock Casino Rockford.”