Operator News
Canada – Century Casinos completes sale-leaseback of four properties in Alberta
By Phil - 7 September 2023
Century Casinos completed the sale of the real estate assets of Century Casino & Hotel Edmonton, Century Casino St. Albert and Century Mile Racetrack and Casino in Edmonton, Alberta and Century Downs Racetrack and Casino in Calgary, Alberta to subsidiaries of VICI Properties for an aggregate purchase price of US$162.4m in cash.
The company retained approximately US$$113.2m 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.
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 US$12.7m.
The annual rent escalator related to the Century Canadian Portfolio is capped at 2.5%. Additionally, the term of the Master Lease will be extended such that, upon closing of the transaction, the lease will have a full 15-year initial base lease term, with four 5-year renewal options.
“We are pleased to extend our good partnership with VICI to our Canada portfolio,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, remarked. “This transaction provides us with the ability to pay down our debt and with greater financial flexibility as we continue to grow,” Haitzmann and Hoetzinger concluded.
