VICI Properties Acquires Four Casinos In Canada From Pure Canadian Gaming Corporation

VICI Properties, the global casino property giant, has announced that its vast portfolio of casino properties has expanded with the addition of four Canadian venues acquired from Pure Canadian Gaming Corporation.

The purchase was done through a sale leaseback transaction and the aggregate purchase price was 271.9 million Canadian dollars, which converts into just over 200 million U.S. dollars.

VICI Properties is a real estate investment trust which specializes in casino properties and it was formed in 2017 when it spun off Caesars Entertainment Corporation as part of the company’s bankruptcy reorganization.

The assets that VICI Properties has now acquired in Canada are Pure Casino Edmonton and Pure Casino Yellowhead, both located in Edmonton, Pure Casino Calgary and Pure Casino Lethbridge. All of these four properties are located in the province of Alberta.

Pure Casino Edmonton is the largest of the four, featuring 27 table games, 16 poker tables, 852 slot machines and 28 video lottery terminals. Pure Casino Yellowhead has 24 table games, 15 poker tables, 753 slot machines and 26 video lottery terminals.

Pure Casino Calgary hosts 27 table games and 12 poker tables, along with 832 slot machines and 22 video lottery terminals. Pure Casino Lethbridge is the smallest of the bunch, with just 11 table games and 13 poker tables, along with 427 slots and 28 video lottery terminals.

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VICI Properties announced that the transaction was financed through a combination of cash and from drawing down funds from the company’s existing revolving credit facility. This is the first international investment for the real estate investment trust, which owns several properties in the United States, including Caesars Palace, MGM Grand and the Venetian, three of the most iconic entertainment facilities on the famous Las Vegas Strip.

financed the transaction with a combination of cash on hand and from drawing down funds under its existing revolving credit facility in Canadian dollars. The deal represents the group’s first international investment, with the acquisition to be immediately accretive.

Along with the acquisition, VICI Properties entered a triple-net master lease agreement with Pure Canadian Gaming, with an initial total rent of 21.8 million Canadian dollars per annum and an initial term of 25 years.

John Payne, the President and Chief Operating Officer of VICI Properties, described the acquisition as “another momentous first” for the company as it managed to expand into Canada. The VICI Properties President added that Pure Canadian Gaming became the eleventh tenant of the real estate investment trust.

SOURCE: . Gambling Insider. January 9, 2023.