Century Casinos Completes Sale of Four Alberta Casino Properties to VICI Properties Inc.
In a recent announcement, Century Casinos has officially sealed the deal on the sale of four prominent casino properties in Alberta, marking a significant move in the gaming and entertainment industry. The properties in question—Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino in Edmonton, and Century Downs Racetrack and Casino in Calgary—have been sold to VICI Properties Inc. for a combined purchase price of CA$221.7 million.
The Finalization of the Sale
The official confirmation of the sale came via a statement from Century Casinos, signaling the completion of this significant transaction. Following the sale, Century Casinos retained approximately CA$154.5 million of the purchase price, factoring in expenses related to the acquisition of Century Downs land, selling expenses, and taxes payable to minority property owners.
As part of the deal's culmination, the Century Canadian Portfolio was integrated into the existing triple-net master lease agreement between VICI's subsidiaries and Century Casinos' subsidiaries. This resulted in an annual rent increase of CA$17.3 million. It's worth noting that the annual rent escalation tied to the Century Canadian Portfolio is capped at 2.5%.
Additionally, the term of the Master Lease will be extended, ensuring a complete 15-year initial base lease term after the transaction's closing, along with four five-year renewal options. Stifle served as the exclusive financial advisor to Century Casinos, with legal counsel provided by Faegre Drinker Biddle & Reath LLP and Field LLP.
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Century Casinos' Leadership Expresses Excitement
Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, expressed their enthusiasm for the completion of the deal with VICI. They emphasized that this transaction not only provides the company with the means to reduce its debt but also offers significant financial flexibility, enabling Century Casinos to pursue further expansion within the industry.
Expansion Efforts for Both Companies
It's worth noting that VICI Properties has been actively expanding its portfolio in Alberta. Earlier in 2023, the corporation made a strategic move by entering into an agreement with Pure Canadian Gaming Corporation to acquire several gaming locations, including Pure Casino Edmonton, Pure Casino Yellowhead, Pure Casino Calgary, and Pure Casino Lethbridge.
On the other hand, Century Casinos has been equally dedicated to growing its footprint. In July of the same year, the company announced the successful acquisition of Rocky Gap Casino Resort, located in Maryland, United States. This acquisition, valued at approximately US$56.1 million, was officially finalized on July 25, 2023.
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