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VICI Properties, the owner of four Alberta-based casinos in Canada, has successfully completed the acquisition of Century Casinos’ real estate holdings. The transaction was for CAD 221.7 million (roughly $162.6 million).
VICI Properties will own four casinos under the terms of the agreement: Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, all in Edmonton, and Century Downs Racetrack and Casino in Calgary.
Concurrently, the Century Canadian portfolio has been added to VICI and Century Casinos’ existing triple-net master leasing arrangement. This change resulted in a yearly rent increase of CAD 17.3 million (about $12.7 million), or 7.8% of the acquisition cost.
The new lease deal includes a full 15-year initial base lease term, as well as four five-year tenant renewal options. Century Casinos has also stated that it will exercise its original renewal option.
The purchase was funded with a mix of money from the partial settlement of forward equity sale agreements and monies drawn from VICI Properties’ existing Canadian currency revolving credit facility.
Century Casinos intends to use the transaction revenues to develop its Nugget Casino Resort in Nevada and for other company reasons. In April, the business paid $104.7 million for the operations of the Reno-Sparks resort from Marnell Gaming.
Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, expressed their satisfaction with extending their partnership with VICI to their Canadian portfolio. They noted that the transaction offers financial flexibility as the company continues to grow.
Both VICI Properties and Century Casinos reported revenue growth in the second quarter. VICI’s revenue reached $898.2 million, a 35.5% year-on-year increase primarily due to strategic acquisitions. While Century Casinos experienced a 96.3% decline in net profit, the company achieved record revenue of $136.8 million during the same period.