VICI Properties is increasing its actual property footprint north to Canada with the acquisition of 4 land-based casinos in Alberta.
Pure On line casino Lethbridge. VICI Properties, the actual property funding belief of Caesars Leisure, acquired the land-based property of Pure Canadian Gaming Company for about US$201 million. (Picture: Journey Alberta)
VICI, an actual property funding belief managed by Caesars Leisure, introduced Monday a take care of Pure Canadian Gaming Company. The transaction transfers the possession of 4 casinos to VICI in a deal valued at C$271.9 million (US$200.8 million).
VICI acquired the actual property property of Pure On line casino Edmonton, Pure On line casino Yellowhead, Pure On line casino Calgary, and Pure On line casino Lethbridge. VICI financed the transaction via a mix of money available and from its current line of credit score.
VICI and Pure Canadian Gaming Corp. concurrently entered right into a triple-net grasp lease settlement that permits Pure to retain administration and operations of the 4 casinos. Pure pays VICI an preliminary annual lease of C$21.8 million (US$16.1 million).
The 25-year lease time period will enhance by 1.25% in years two and three. For years 4 onward, the lease will enhance based mostly on the Canadian Shopper Worth Index or 1.5%, whichever is bigger. The yearly lease enhance is capped at 2.5%.
Right now’s announcement marks one other momentous first for VICI as we increase our footprint internationally into Canada with the acquisition of the Pure portfolio,” commented John Payne, VICI’s president and chief working officer.
Pure Canadian Gaming is VICI’s eleventh tenant. Different on line casino operators with VICI lease agreements embody the Jap Band of Cherokee Indians, Onerous Rock Worldwide, Jack Leisure, MGM Resorts, and Penn Leisure.
Canadian Casinos
VICI’s first on line casino play exterior the US offers the actual property belief footing up north. The 4 Pure Canadian casinos account for the corporate’s total portfolio.
The Pure casinos are small in comparison with VICI’s Las Vegas Strip holdings. Pure Lethbridge’s on line casino measures simply 43,450 sq. ft and comes with 450 slot machines and two dozen desk video games.
Pure Calgary measures 57,000 sq. ft, with 850 slots and 40 tables. Pure Yellowhead’s 75,000-square-foot gaming ground holds 800 slots and 40 tables. Pure Edmonton measures 72,000 sq. ft, however has probably the most gaming positions of the bunch, with about 875 slots and 45 desk video games.
Alberta is the third-largest on line casino market in Canada behind Ontario and Quebec. Alberta is exclusive in that the business is predicated on a charitable gaming mannequin.
The Alberta Gaming & Liquor Fee (AGLC) owns all slot machines within the province. The AGLC retains 70% of the gross gaming income from the units. The remaining 30% is cut up between the on line casino operator and charitable teams.
Casinos additionally cut up their desk gaming enterprise with charities, however the AGLC doesn’t take a reduce. Meals and beverage, leisure, and all different income are stored solely by the on line casino.
VICI Closes MGM Grand, Mandalay Bay
It was a busy Monday for VICI Properties, because the funding car additionally introduced its execution of the remaining 49.9% stake in MGM Grand Las Vegas and Mandalay Bay. Introduced early final month, the vendor was Blackstone Actual Property Revenue Belief.
VICI paid Blackstone $1.27 billion in money and assumed $3 billion in debt to completely purchase the enduring Strip properties. With the transaction accomplished, VICI is the only real proprietor of the 2 casinos.
MGM will proceed working the properties via an annual lease settlement. MGM’s lease legal responsibility for 2023 is $310 million.
