VICI to provide $700 million to enhance The Venetian Resort Las Vegas

VICI Properties has agreed to provide $700 million of financing for The Venetian Resort Las Vegas through its Partner Property Growth Fund strategy.

VICI has agreed to provide up to $700 million of financing, of which $400 million will be drawn in 2024, alongside an incremental $300 million that The Venetian Resort will have the option, but not the obligation, to draw in whole or in part until November 1, 2026.

The investment will fund several projects, including hotel room product renovations, gaming floor optimization, and entertainment and convention center enhancements, to improve the overall guest experience and enhance the value of the property.

The initial $400 million investment will be funded in three quarterly draws based on a fixed funding schedule: $100 million in Q2 2024, $150 million in Q3 2024, and $150 million in Q4 2024.

“We are thrilled to continue to grow our partnership with The Venetian Resort by funding impactful expansion projects through our Partner Property Growth Fund,” said VICI Properties president and chief operating officer John Payne.

“Since we acquired this marquee Las Vegas asset alongside funds managed by Apollo Global Management, Inc. in 2022, The Venetian Resort operating team has driven impressive performance at the property, and we are excited to be a partner in their innovative efforts to maximize the economic productivity of this iconic asset.”

VICI Properties chief financial officer David Kieske added: “We continue to believe that our Partner Property Growth Fund strategy can provide us with attractive capital deployment opportunities given the scale and quality of our real estate assets, and the operating dynamism that exists within each of our properties.

“Our capital is well-suited to serve our operating partners who are energetically and creatively looking for ways to continuously enhance the profitability and operations of our assets.”

The Venetian Capital Investment is expected to be funded with a combination of cash and the partial settlement of outstanding forward equity sale agreements.

VICI also announced financial results for the first quarter of 2024, with total revenue increasing 8 per cent to $951.5 million, and net income up 14 per cent at $590.0 million.

Shares in VICI Properties Inc (NYSE:VICI) closed 1.23 per cent higher at $28.90 per share in New York Wednesday.