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Casino landlord VICI Properties has completed the acquisition of the real estate assets of four casinos in Alberta, Canada from Century Casinos for CAD221.7 million ($162.6 million). Under the terms of the agreement, VICI takes ownership of Century Casino & Hotel Edmonton, Century Casino St. Albert, and Century Mile Racetrack and Casino, each in Edmonton; along with Century Downs Racetrack and Casino in Calgary.
Simultaneous with the closing of the transaction, the Century Canadian portfolio was added to the existing triple-net master lease agreement between VICI and Century, and annualized was rent increased by CAD17.3 million ($12.7 million), or 7.8% of the cost of the acquisition.
This agreement is also being extended so the lease has a full 15-year initial base lease term, with four five-year tenant renewal options, and Century agreeing to exercise its initial renewal option.
Century Casino & Hotel Edmonton
VICI noted the transaction was funded through a combination of proceeds from the partial settlement of forward equity sale agreements and from drawing down funds under the company’s existing revolving credit facility in Canadian dollars.
For its part, Century says it will use proceeds to fund improvements at its Nugget Casino Resort in Nevada and general corporate purposes. The company completed the acquisition of the operations of the resort in Reno-Sparks from Marnell Gaming for approximately $104.7 million back in April.
Co-CEOs Peter Hoetzinger and Erwin Haitzmann.
“We are pleased to extend our good partnership with VICI to our Canada portfolio,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, remarked. “This transaction provides us with the ability to pay down our debt and with greater financial flexibility as we continue to grow.”
The sale comes after both Vici and Century posted revenue growth in the second quarter. VICI reported revenue of $898.2 million, up by 35.5% year-on-year, mainly as a result of strategic acquisitions. Meanwhile, despite suffering a 96.3% decline in net profit, Century reported record revenue of $136.8 million in the second quarter.