Penn National Gaming has signed an agreement to buy Greektown Casino-Hotel in Detroit, Michigan, for around $300m in cash.

Along with the closing of the deal, Penn National will also sign a triple net lease agreement with VICI Properties for the Greektown facility.

This lease will carry an initial annual rent of around $55.6m and an initial term of 15 years with four renewal options of five years.

Penn National chief executive officer Timothy J Wilmott said: “The acquisition of the Greektown Casino-Hotel operations from JACK Entertainment, LLC will further expand Penn National’s already diverse operating base with a facility that is extremely well-positioned in one of the nation’s largest regional gaming markets.

“At the same time, Greektown and its customers will benefit from becoming part of a larger gaming operator, with access to properties in Las Vegas and across the country. We are pleased to partner again with VICI Properties to structure this transaction in a manner that is immediately accretive to Penn National’s operating results upon closing.

Greektown has nearby attractions such as Comerica Park, Ford Field, Little Caesars Arena, GM’s Renaissance Center and Cobo Conference Center.

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The acquisition will be funded with a mix of cash on hand and debt.

Opened in 2000, Greektown Casino-Hotel has 100,000ft2 of casino space, around 2,700 gaming machines and 60 table games, a poker room, seven fast casual food outlets, four bars,  a coffee shop and three restaurants.

In addition, the casino has AAA Four Diamond 400-room, luxury high-rise hotel with 14,000ft2 of event and catering space.

Following closure of the  Greektown deal, Penn National’s portfolio of regional gaming facilities will grow to 41 properties.

The deal is expected to close in mid-2019, following the approval of the Michigan Gaming Control Board and other customary closing conditions.