PA Casino Resort Commands $281M
- Dec 26, 2017
Boyd Gaming Corporation has entered into a definitive agreement to acquire Valley Forge Casino Resort, a 40,000-square foot casino in King of Prussia, Pa., from Valley Forge Convention Center Partners.
“In our industry, Pennsylvania is a pretty important market. It’s the second-largest state in terms of gambling revenues, David Strow, Boyd Gaming Corp.’s vice president of corporate communications, told Commercial Property Executive. “So, the opportunity to enter that market was obviously very important to us.”
The resort boasts 600 slot machines, 50 table games and nearly 500 hotel rooms. The property also features eight restaurants and bars, and offers more than 100,000 square feet of meeting, convention and exhibit space.
The casino resort is situated 20 miles west of downtown Philadelphia, and is Boyd Gaming’s first asset in Pennsylvania.
“Pennsylvania became even more attractive in the last month or so when it passed a package of gaming expansion legislation,” Strow said. “That means some pretty significant changes to that state’s gaming industry.”
According to Strow, the specific location of the property was pretty appealing as well.
“It’s located in a very affluent area, just 20 miles west of downtown Philadelphia,” he said. “It’s a very attractive location, a very attractive asset in an attractive market. That’s really the appeal of the property to us as a company.”
A Growing Business
The transaction is expected to close in the third quarter of 2018, subject to customary closing conditions and the receipt of all required regulatory approvals.
“We’re a company that’s interested in growing through acquisitions, that has really been a part of our business strategy for quite some time,” Strow said. “We aren’t really a company that necessarily targets specific locations; our philosophy is we want to acquire attractive assets at attractive prices in markets that are a good fit for our company. And in this case, this asset really fit that very well.”
Morrison & Foerster LLP served as legal advisor to Boyd Gaming for the transaction. Moelis & Company LLC served as exclusive financial advisor to Boyd Gaming. Cozen O’Connor served as legal advisor to Valley Forge Convention Center Partners LP.