Real estate investment trust VICI Properties has completed the acquisition of the real estate assets of four Century Casinos properties in Canada.
Following an initial agreement in May, VICI has paid an aggregate purchase price of CAD$221.7 million to acquire the real estate assets of Century Casino & Hotel Edmonton, Century Casino St. Albert and Century Mile Racetrack and Casino in Edmonton, as well as Century Downs Racetrack and Casino in Calgary.
The transaction closed September 6 and was funded through a combination of proceeds from the partial settlement of forward equity sale agreements, and a draw down against the company’s existing revolving credit facility in Canadian dollars.
Simultaneous with the closing of the deal, the Century Canadian portfolio was added to the existing triple-net master lease agreement between VICI and Century Casinos, and annualized rent increased by $17.3 million.
Additionally, the term of the master lease with Century was extended so that the lease has a full 15-year initial base lease term, with four 5-year tenant renewal options.
“We are pleased to extend our good partnership with VICI to our Canada portfolio,” said Century Casinos co-CEOs Erwin Haitzmann and Peter Hoetzinger. “This transaction provides us with the ability to pay down our debt and with greater financial flexibility as we continue to grow.”
Shares in VICI Properties Inc (NYSE:VICI) closed 0.62 per cent higher at $31.01 per share in New York Wednesday, while shares in Century Casinos Inc (NASDAQ:CNTY) closed 6.60 per cent lower at $6.09 per share.