Who’s Behind the Sunland Park Casino Deal
Strategic Gaming Management finalised its $301 million purchase of Sunland Park Racetrack & Casino in southern New Mexico yesterday. The company’s founder and CEO J. Grant Lincoln led the acquisition.
SGM sold the property’s real estate to Gaming and Leisure Properties right after closing. GLPI paid $183.75 million for the land and buildings.
The company also brought in Matthew Flandermeyer as its new CFO. He spent the past nine years in the same role at Golden Entertainment. Fred Heinrich, who’s been serving as General Counsel & Compliance Officer, takes over as President of Sunland Park.
Why This Acquisition Fits SGM’s Regional Strategy
Lincoln says the deal moves SGM toward becoming a major operator of regional casino properties. “We will continue to invest in our assets and thoughtfully grow our platform while continuing to pursue opportunities that meet our strategic plans,” he told investors.
The property sits in a strong border market between Texas and New Mexico. It’s got an established customer base and limited competition in the area.
Flandermeyer sees serious growth potential. “To me, Strategic represents an incredible opportunity for growth which I clearly recognise from prior experience,” he said about joining SGM.
What Assets Come With the Purchase
Sunland Park operates 738 slot machines and 12 electronic gaming tables. The casino floor covers 25,000 square feet of gaming space.
The facility includes a one-mile racetrack for thoroughbred and quarter-horse racing. A 733-seat stadium overlooks the track.
GLPI announced the real estate purchase on October 1st with an 8.2% initial cap rate. The sale-leaseback structure lets SGM operate the casino while GLPI owns the buildings and land.
How SGM Plans to Run Its New Property
Heinrich will oversee daily operations and strategic decisions for the casino. “I am really excited to work with Grant and the wonderful team that exists here at Sunland, as well as the surrounding communities in this new role,” he said.
SGM keeps the Sunland Park staff in place. Lincoln mentioned the company welcomes “the incredible Sunland Park team to the Strategic family.”
Flandermeyer brings experience managing multiple business functions. At Golden Entertainment, he handled finance, business development, IT, compliance, legal matters, risk management and accounting. He’ll apply that same approach at SGM.
The acquisition puts SGM in position to add more regional properties. But Lincoln stressed the company will only pursue deals that match its strategy of buying established casinos with loyal customers and strong market positions.
