Century Casinos has officially completed the sale of four casino properties in Alberta to VICI Properties, with all four being leased back to the company.
The casino entertainment firm announced in May that a $221.7m deal had been agreed for subsidiaries of VICI Properties to acquire the real estate assets of its Century Canadian Portfolio, comprising of Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino.
The transaction has now been finalized, with Century Casinos retaining approximately $154.5m of the purchase price after giving effect to the purchase of the Century Downs land, selling expenses, Canadian and US taxes and proceeds to be paid to the minority owners of Century Downs.
Erwin Haitzmann and Peter Hoetzinger, Co-CEOs of Century Casinos, commented: “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.”
Simultaneous with the closing of the transaction, the Century Canadian Portfolio was added to the existing triple-net master lease agreement between subsidiaries of VICI and subsidiaries of the company, and annual rent will increase by $17.3m. The annual rent escalator related to the Century Canadian Portfolio is capped at 2.5%.