• Sat. Jul 24th, 2021

CBRE Buys Union Gaming in Bid to Bolster Gaming Funding Operations


Jul 2, 2021

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 trade.

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. Primarily based in Las Vegas, with one other workplace in Hong Kong, Union Gaming was based in 2008.
The agency offers conventional funding banking providers, together with debt and fairness choices, advising on mergers and acquisitions, along with feasibility opinions and research.

Union Gaming’s workers and CBRE’s current Las Vegas-based gaming funding gross sales crew led by Michael Parks will type a mixed world gaming crew. Invoice Lerner, Union Gaming’s co-founder, will function CBRE’s world head of gaming funding banking,” in accordance with an announcement issued by the actual property firm.

Union Gaming additionally has an in depth analysis operation, protecting one of many greatest rosters of on line casino corporations amongst all funding banks. The agency covers 4 Las Vegas Strip operators, three corporations with dominant Las Vegas locals footprints, all six Macau concessionaires, six regional gaming corporations, all three publicly traded gaming actual property funding trusts (REITs), 4 ex-Macau Asian operators, and a trio of gaming expertise suppliers.
Good Time to Make Deal for Union Gaming
For CBRE, the timing in buying Union Gaming seems to be glorious, as information of the deal comes amid a flurry of company exercise within the gaming trade.

Whereas conventional large-scale takeovers within the on line casino house are on pause within the wake of the coronavirus pandemic, different transaction exercise within the trade is brisk, together with property gross sales, debt and fairness raises, asset gross sales, deliberate spin-offs, and mergers involving particular functions acquisition corporations (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 shoppers.
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 Progress Properties (NYSE:MGP), VICI Properties (NYSE:VICI), and Bally’s (NYSE:BALY).
What’s Subsequent for CBRE
Dallas-based CBRE, the world’s largest business actual property providers, and funding agency based mostly on 2020 income, didn’t say if the Union Gaming buy can 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 frontrunner within the fast-growing world gaming sector,” stated James Scott of CBRE Capital Advisors. “We’re excited so as to add to our investment-banking depth by way of the addition of Union’s gifted professionals, deep relationships throughout the gaming sector, and public-market capabilities.”

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