Commercial and tribal gaming professionals from across the globe will once again converge on Las…
Posted on: July 1, 2021, 12:10h.
Final up to date on: July 1, 2021, 02:52h.
Todd Shriber Learn Extra
Business actual property large CBRE Group (NYSE: CBRE) is buying Union Gaming, a boutique funding financial institution specializing in the gaming business.
Union Gaming principals Wealthy Moriarty left, and Invoice Lerner seen right here in 2012. CBRE is shopping for the gaming-focused funding financial institution. (Picture: Las Vegas Solar)
The monetary phrases of the transaction weren’t disclosed. Based mostly in Las Vegas, with one other workplace in Hong Kong, Union Gaming was based in 2008.
The agency gives conventional funding banking companies, together with debt and fairness choices, advising on mergers and acquisitions, along with feasibility evaluations and research.
Union Gaming’s staff and CBRE’s current Las Vegas-based gaming funding gross sales crew led by Michael Parks will kind a mixed international gaming crew. Invoice Lerner, Union Gaming’s co-founder, will function CBRE’s international head of gaming funding banking,” in accordance with an announcement issued by the true property firm.
Union Gaming additionally has an in depth analysis operation, masking one of many greatest rosters of on line casino firms amongst all funding banks. The agency covers 4 Las Vegas Strip operators, three firms with dominant Las Vegas locals footprints, all six Macau concessionaires, six regional gaming firms, all three publicly traded gaming actual property funding trusts (REITs), 4 ex-Macau Asian operators, and a trio of gaming know-how suppliers.
Good Time to Make Deal for Union Gaming
For CBRE, the timing in buying Union Gaming seems to be wonderful, as information of the deal comes amid a flurry of company exercise within the gaming business.
Whereas conventional large-scale takeovers within the on line casino area are on pause within the wake of the coronavirus pandemic, different transaction exercise within the business is brisk, together with property gross sales, debt and fairness raises, asset gross sales, deliberate spin-offs, and mergers involving particular functions acquisition firms (SPACs).
All that exercise creates alternative — and charges — for funding banks, together with Union Gaming. The Las Vegas-based firm has suggested on $2 billion in mergers and acquisitions and took part in $28 billion value of capital raises for purchasers.
Simply this 12 months, Union Gaming has been concerned with personal notes placements for Full Home Resorts (NASDAQ:FLL), MGM China, and Resorts World’s New York Metropolis on line casino, amongst others, in addition to collaborating in financing offers for MGM Development Properties (NYSE:MGP), VICI Properties (NYSE:VICI), and Bally’s (NYSE:BALY).
What’s Subsequent for CBRE
Dallas-based CBRE, the world’s largest industrial actual property companies, and funding agency primarily based on 2020 income, didn’t say if the Union Gaming buy shall be accretive to earnings, or when the transaction is scheduled to shut.
CBRE’s Las Vegas crew is lively in gross sales of gaming properties, indicating there are apparent synergies between its current operations and what Union Gaming brings to the desk.
“Union Gaming fortifies CBRE’s place as a pacesetter within the fast-growing international gaming sector,” stated James Scott of CBRE Capital Advisors. “We’re excited so as to add to our investment-banking depth via the addition of Union’s gifted professionals, deep relationships throughout the gaming sector, and public-market capabilities.”
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