Most recently, Century Casinos issued a statement confirming the sale of four gambling real estate assets in Alberta to VICI Properties Inc. Century Casino & Hotel Edmonton, Century Casino St. Albert and Century Mile Racetrack and Casino in Edmonton and Century Downs Racetrack and Casino in Calgary were now sold for an aggregate purchase price of CA$221.7 million.
Century Casinos is a leading gambling entertainment company running casino operations in U.S., Canada, and Poland. In the Great White North, the operator operates Century Casino & Hotel in Edmonton, the Century Casino in St. Albert, Century Mile Racetrack and Casino in Edmonton and Century Downs Racetrack and Casino in Calgary.
Sale Now Finalized
In its latest statement, the gambling leader announced that the sale of the four gambling facilities in Alberta has now been finalized. The company retained around CA$154.5 million of the purchase prices after giving effect to the purchase of Century Downs land, selling expenses, and Canadian and US taxes will be paid to the minority owners of the property.
In addition to the finalization of the deal, the Century Canadian Portfolio was added to the existing triple-net master lease agreement between the subsidiaries of VICI and the subsidiaries of the operator. Annual rent spiked by CA$17.3 million. The press release also stated that the annual rent escalator related to the Century Canadian Portfolio has been capped at 2.5%.
Furthermore, the term of the Master Lease will be extended such that, after the closing of the transaction, the lease will have a full 15-year initial base lease term, with four five-year renewal options. Stifle was the exclusive financial advisor to the operator, and Faegre Drinker Biddle & Reath LLP and Field LLP acted as legal counsel to the company for the arrangement.
Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos shared their excitement over the completion of the deal with VICI. The two also said that the transaction will provide the operator with the ability to repay the company’s debt and with great financial flexibility it will be able to continue to expand its operations.
Both Companies Expand their Portfolios
It should be mentioned that at the start of 2023, VICI Properties inked another important deal to purchase gaming locations in Alberta. At the time the corporation struck a deal with Pure Canadian Gaming Corporation to acquire its Pure Casino Edmonton, Pure Casino Yellowhead, Pure Casino Calgary, and Pure Casino Lethbridge.
Century Casinos has also recently sealed an agreement to expand its area of operations. In July, the operator announced that it had finalized the acquisition of Rocky Gap Casino Resort, which is located in Maryland, United States. It was reported that the deal for the purchase of the gaming property was worth approximately US$56.1 million and was finalized on July 25, 2023.
Source: “Century Casinos, Inc. Completes Sale-Leaseback of Four Properties in Alberta, Canada” PR Newswire, September 6, 2023
(No Ratings Yet)
Loading...