VICI Properties Inc.’s subsidiaries completed the purchase of the real estate assets that belonged to Century Casinos, Inc. The acquired properties are Century Casino & Hotel Edmonton, Century Casino St. Albert Century Mile Racetrack and Casino in Edmonton, Alberta, and Century Downs Racetrack and Casino in Calgary, Alberta, as the Century Casinos announced recently.
The price of this aggregate purchase was CAD 221.7 million, or USD $162.4 million in cash. The company kept CAD 154.5 million (USD $113.2 million) after additional costs such as selling expenses, taxes of both countries and the amount that had to be paid to the minority shareholders at Century Downs.
At the same time, these properties have been added to the triple-net master lease agreement that was signed between the buyers, the VICI subsidiaries, and the subsidiaries of Century Casinos.
This led to an increase in the annual rent, which will now be CAD 17.3 million (USD $12.7 million). The escalator of the annual rent is increased to 2.5%. However, the company will have more time to close the Master Lease since it is extended to 15 years after the transaction is once completed. On top of that, after the initial base lease term, it will be able to extend it four times, each time for five years.
Successful partnerships and expansions:
Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers at Century Casinos, are very satisfied on this partnership. They commented on this one: “We are pleased to extend our good partnership with VICI to our Canada portfolio. This transaction provides us with the ability to pay down our debt and with greater financial flexibility as we continue to grow.”
Many people were there to help the process go smoothly, and among the most significant are Stiefel, which was an exclusive financial advisor to Century Casinos, as well as Faegre Drinker Biddle & Reath LLP and Field LLO, which were the legal counsels for all matters related to the transaction.
Century Casinos is one of the leading casino entertainment companies in the United States and Canada, along with the European continent. It is currently present in several US states, such as West Virginia, Maryland, Missouri, Colorado, and Nevada. In Canada, the company operates three casinos and racetracks in Alberta. Century Casinos expanded to Europe through its subsidiary, Casinos Poland Ltd., where it succeeded in establishing eight casinos. It is planned to expand even further, with many currently ongoing projects in various regulated markets.