Calgary-based investment firm acquires Century Mile and Century Downs Racetracks from Century Casinos
Century Casinos has agreed to sell the racing and gaming operations of its two casino properties in the Canadian province of Alberta.
The definitive agreement will see the company sell Century Mile Racetrack and Casino in Edmonton and Century Downs Racetrack and Casino in Calgary to Highfield Investment Group for an aggregate purchase price of US$16.4 million (CAD$23.2 million).
Highfield is a privately held investment and development company headquartered in Calgary, with a dedicated focus on investing in Alberta.
The purchase price represents a 6.1x multiple of FY 2025 EBITDA.
Century Casinos owns 100 per cent of Century Mile and a 75 per cent interest in Century Downs, with non-controlling partners owning the remaining 25 per cent.
“As part of our ongoing strategic review process, the sale of Century Mile and Century Downs racinos is an important step towards concentrating our resources on our U.S. properties, where we see the strongest opportunities for growth,” said Erwin Haitzmann and Peter Hoetzinger, co-CEOs of Century Casinos. “This transaction improves our financial flexibility and operational efficiency as we focus on our core U.S. assets.”
The real estate underlying Century Mile and Century Downs is owned by subsidiaries of VICI Properties and is leased under the company’s existing triple-net master lease agreement.
With the removal of these two properties from Century’s Master Lease, the company’s annual rent will be reduced by $7.5 million.
The company intends to use the proceeds from the transaction to reduce debt.
VICI has agreed to enter into a new separate triple-net lease with a subsidiary of Highfield with respect to the two properties, with the lease having an initial annual base rent of $7.5 million.
“At VICI, we always aim to support our tenants as they evaluate strategies to achieve their company’s long-term goals and objectives and are proud to collaborate with the Century Casinos team on this transaction that helps to deleverage the Century balance sheet,” said VICI president and chief operating officer John Payne. “We look forward to adding Highfield to our tenant roster upon closing this transaction and believe their business plan and regional focus will help deliver strong results at Century Mile and Century Downs.”
Adrian Munro, president of Highfield, said: “As a team focused on the long-standing economic vitality of Alberta businesses with a strong presence in Alberta’s horseracing ecosystem, we are looking forward to adding Century Mile and Century Downs to our portfolio and implementing a business plan to modernize the racetracks while maintaining a positive culture for our team and our guests. We appreciate VICI’s long-term approach to partnership throughout this process.”
The transaction is expected to close in the fourth quarter of 2026 or the first quarter of 2027, subject to customary regulatory approvals and closing conditions.
Shares in Century Casinos Inc. (NASDAQ:CNTY) closed 4.55 per cent lower at $1.05 per share in New York Monday, while shares in VICI Properties Inc. (NYSE:VICI) closed 1.38 per cent lower at $23.19 per share.