Sale of Caesars' undeveloped land near Strip casinos on hold

Caesars Entertainment's affiliated real estate investment trust, Vici Properties, has decided to stop a transaction with Caesars to acquire 23 acres of undeveloped land on the Las Vegas Strip, which is not currently being used and is close to the Caesars Forum.

In June, Vici had committed to purchasing the property for $103.5 million, or $4.5 million per acre. While the deal is not moving forward at this time, it might be revisited at a later date.

Vici CEO Edward Pitoniak told investors Thursday during a conference call concerning the third-quarter earnings that Vici and Caesars have put on hold the potential sale of 23 acres of land next to several of its central Strip properties because of entitlement and permitting issues surrounding Caesars’ parking obligations, as reported by Las Vegas Review-Journal.

“It was not going to be easy to unwind those quickly, and given the magnitude of activity that Caesars is currently engaged in, in terms of integrating after the (Eldorado Resorts) merger, and undertaking the various activities it is, we agreed that it was best for both of us if, for the meantime, we put that initiative aside and perhaps return to it at a time when the dust has settled a bit post-merger,” Pitoniak said. Eldorado and Caesars completed a $17.3 billion merger this summer.

Vici, the landlord company for 31 gaming facilities including Caesars Palace and Harrah’s in Las Vegas, was looking to buy a parcel from Caesars adjacent to Bally’s, The Linq Hotel, Paris Las Vegas and Planet Hollywood Resort. Vici and Caesars had agreed in June to the sale, concurrent with a $400 million mortgage on the Caesars Forum convention center.