Century Casino reports that VICI Properties has entered into a final agreement to acquire property assets of four properties in Alberta. 슬롯머신 These four are Century Casino & Hotel Edmonton and Century Casino St. Purchased a total of CA$221.7 million in cash at Albert, Century Mile Racecourse and Casino, Century Downs Racecourse and Casino.
Century Casino, a gambling entertainment company, owns and operates numerous gaming facilities not only in Alberta but also in some states in the United States. It currently owns 75% of the Century Downs racetrack and casino in Calgary, Alberta. It also signed a contract to acquire 100% of the operating rights of the Rocky Gap Casino Resort in Maryland, USA.
VICI Expands From Alberta
Under the terms of the agreement, VICI Properties will acquire four casino branches at an average price of CA 221.7 million on an exchange rate basis on May 16, 2023. The deal will pay CA$192.3 million to Century Casino’s subsidiary and approximately CA$29.4 million to acquire Century Downs’ fee simple property interest.
Canada’s Century portfolio will be added to the Triple Net Master Lease Agreement between its VICI subsidiaries and Century subsidiaries in addition to the closing of the transaction, with annual rent increasing by CA$17.3 million. It represents a potential acquisition capital ratio of 7.8%. Under Master Lease, the rental coverage ratio at the property level is expected to be about 2.0 times.
In addition, when the masterless period is expanded and the transaction is completed, it will have an initial basic lease period of 15 years, and four additional five-year renewal options will be added. Meanwhile, the company’s obligations under the Master Lease will continue to be guaranteed by Century Casino.
It should also be explained that the agreement is still subject to customary regulatory approval and termination conditions and is expected to be completed in the second half of 2023. In addition, Stifel served as the company’s exclusive financial advisor, while Faegre Drinker Biddle & Reath LLP and Field LLP served as operators’ legal advisors to help with the contract.
In early 2023, VICI Properties signed another purchase agreement to expand its operations in Alberta. In January, the company announced the purchase of four properties in Pure Canada Gaming Corporation. These four casinos were Pure Casino Edmonton, Pure Casino Yellowhead, Pure Casino Calgary, and Pure Casino Lesbridge.
Changes in the Domestic Gambling Industry
Recently, Alberta announced that it would increase VLT capacity as a way to help airport authorities find themselves in financial difficulties. The current cap has increased from 6,000 to 6,098. Edmonton International Airport requested a change late last year.