VICI Properties has bought the real estate assets of PURE Casino Edmonton in Edmonton, Alberta, PURE Casino Yellowhead in Edmonton, Alberta, PURE Casino Calgary in Calgary, Alberta, and PURE Casino Lethbridge in Lethbridge, Alberta, from PURE Canadian Gaming Corp. for US$200.8m.
VICI financed the transaction with a combination of cash on hand and from drawing down funds under its existing revolving credit facility in Canadian dollars.
Simultaneous with the acquisition, VICI entered into a triple-net master lease agreement with PURE covering the PURE Portfolio. The PURE Master Lease has an initial total annual rent of approximately US$16.1m representing an implied acquisition capitalization rate of eight per cent, and an initial term of 25 years, with four 5-year tenant renewal options. PURE’s obligations under the PURE Master Lease are guaranteed by the parent entity of PURE.
John Payne, President and Chief Operating Officer of VICI Properties, said: “Over the last five and a half years, VICI has built a portfolio of market-leading experiential real estate. Today’s announcement marks another momentous first for VICI as we expand our footprint internationally into Canada with the acquisition of the PURE Portfolio. This transaction highlights our ability to source, structure, and fund cross-border transactions, widening our opportunity set as we continue along our growth trajectory. We are pleased to add PURE as our eleventh tenant and look forward to a mutually beneficial partnership.”