The private equity group of Brookfield Asset Management and Great Canadian Gaming Corp (TSX: GC) have closed their buy of gaming assets in the Greater Toronto Area. The deal, announced last August, had a $170 million purchase price. Ontario Lottery and Gaming Corp awarded the gaming assets, which accounted for gross revenue of more than $1 billion in 2016. Ontario Gaming GTA LP, a partnership formed by Brookfield and Great Canadian, is entitled to run the facilities for a minimum of 22 years. It plans to “undertake an ambitious growth strategy” that is expected to include enhanced gaming offerings and property expansions.
Great Canadian Gaming and Brookfield complete acquisition of the GTA Bundle in Ontario gaming modernization process
COQUITLAM, BC and TORONTO, Jan. 23, 2018 /CNW/ – Great Canadian Gaming Corporation (TSX:GC) (“Great Canadian”) and Brookfield Business Partners L.P. (NYSE: BBU) (TSX:BBU.UN) (“Brookfield Business Partners”) together with its institutional partners (collectively, “Brookfield”) announced today that they, through their partnership Ontario Gaming GTA LP (“the Partnership”), have successfully completed the acquisition of certain gaming assets in the Greater Toronto Area (the “GTA Bundle”) for a purchase price of approximately C$170 million.
The Partnership has signed a casino operating and services agreement (“COSA”) with the Ontario Lottery and Gaming Corporation (“OLG”) to take over the day-to-day operations of the gaming facilities in the GTA Bundle.
The GTA Bundle is the largest award by OLG as part of the modernization of its casino operations. In 2016, its three facilities, OLG Slots at Woodbine, OLG Slots at Ajax Downs and Great Blue Heron Casino, located on the Mississaugas of Scugog Island First Nation lands, generated gross gaming revenue of over C$1 billion. These facilities have a combined total of over 4,000 slot machines, 60 table games and employ more than 2,200 staff. In accordance with the terms of the COSA, the Partnership will have the exclusive right to operate these facilities for a minimum period of 22 years.
Going forward, the Partnership intends to undertake an ambitious growth strategy to enhance the guest experience. This modernization and development (subject to approvals) of the facilities is intended to include enhanced gaming offerings and integrated property expansions that will incorporate leading world-class amenities such as state-of-the-art meeting and event facilities, hotels and premier entertainment venues. The Partnership intends to work closely with stakeholders as it enhances and transforms the properties located in the GTA Bundle.
About Great Canadian Gaming Corporation:
Founded in 1982, Great Canadian Gaming Corporation is a BC based company that operates 22 gaming, entertainment and hospitality facilities in British Columbia, Ontario, New Brunswick, Nova Scotia, and Washington State. Fundamental to the company’s culture is its commitment to social responsibility. “PROUD of our people, our business, our community” is Great Canadian’s brand that unifies the company’s community, volunteering and social responsibility efforts. Under the PROUD program, Great Canadian annually invests over $2.5 million in our communities, and in 2016, over 1,500 charitable organizations were supported by Great Canadian. In each Canadian gaming jurisdiction, a significant portion of gross gaming revenue from gaming facilities is retained by our crown partners on behalf of their provincial government for the purpose of supporting programs like healthcare, education and social services.
About Brookfield Business Partners:
Brookfield Business Partners is a business services and industrial company focused on owning and operating high-quality businesses within Brookfield’s private equity group that benefit from barriers to entry and/or low production costs. Brookfield Business Partners is listed on the New York and Toronto stock exchanges. Further information is available at http://bbu.brookfield.com. Important information may be disseminated exclusively via the website; investors should consult the site to access this information. Brookfield Business Partners is the flagship listed business services and industrials company of Brookfield Asset Management, a leading global alternative asset manager with over $265 billion of assets under management. For more information, go to www.brookfield.com.
For further information: Media Contact: Sonja Mandic, Director Media Relations and Social Responsibility, Great Canadian Gaming Corporation, Tel: 604.889.7114, Email: firstname.lastname@example.org; Media Contact: Claire Holland, Tel: 416.369.8236, Email: email@example.com; Investors: Courtney Burke, Tel: 416.369.2629, Email: firstname.lastname@example.org
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