Century Casinos has actually now reported that it has actually struck a conclusive agreement for VICI Properties to get the property possessions of 4 homes in Alberta. These 4 websites are Century Casino & & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino for an aggregate purchase of CA$ 221.7 million in money.
As a gaming home entertainment business, Century Casinos owns and runs many video gaming homes throughout Alberta in addition to in choose states in the United States. Presently, the holds a 75 %ownership interest in Century Downs Racetrack and Casino in Calgary, Alberta. It has likewise had an arrangement to obtain 100%of Rocky Gap Casino Resorts’operations in Maryland, United States.
VICI Properties Expands in Alberta
According to the regards to the arrangement, VICI Properties will now obtain the 4 gambling establishment places for a typical cost of CA$ 221.7 million according to the currency exchange rate of May 16, 2023. Via the offer, CA$ 192.3 million will be paid to subsidiaries of Century Casinos and around CA$ 29.4 million to get the charge easy property interest in Century Downs.
Closing of the deal, the Century portfolio in Canada will be included to the triple-net master lease arrangement in between subsidiaries of VICI and a subsidiary of Century and yearly lease will leap by CA$ 17.3 million. Representing an implied acquisition capitalization rate of 7.8%. Property-level lease protection ratio under Master Lease is anticipated to be around 2.0 x.
Moreover, the regard to the Master Lease will be broadened that after the completion of the deal, the leaves will have a complete 15-year preliminary base lease term, with 4 5-year renewal choices. The business’s commitments under Master Lease will continue to be ensured by Century Casinos.
It must be likewise discussed that the arrangement is still based on traditional regulative approvals and closing conditions and is predicted to be finished in the 2nd half of 2023. Stifel acted as the special monetary consultant to the business, and Faegre Drinker Biddle & & Reath LLP and Field LLP acted as legal counsel to the operator to assist the arrangement.
At the start of 2023, VICI Properties tattooed another purchase arrangement to broaden its operations in the Province of Alberta. In January, the corporation revealed the purchase of 4 of Pure Canadian Gaming Corporation’s homes. These 4 gambling establishments were Pure Casino Edmonton, Pure Casino Yellowhead, Pure Casino Calgary, and Pure Casino Lethbridge.
Modifications to the Local Gambling Industry
Just recently, the Province of Alberta revealed that it will be increasing VLT capability, as a method of assisting airport authorities discovered themselves in monetary difficulty. Now the cap has actually been upped from 6,000 to 6,098. The modification was presented at the end of in 2015 and it was asked for by the Edmonton International Airport.
Source: “Century Casinos, Inc. Reveals Sale-Leaseback of Four Properties in Alberta, Canada” PR Newswire, May 17, 2023
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