VICI Properties acquires Canadian gaming properties in CA$271.9m deal
VICI Properties has acquired the real estate assets of four Canadian gaming properties for a combined CAD$271.9m (£166.9m/$203.2m) as part of a sale leaseback transaction with Pure Canadian Gaming Corp.
The gaming properties are Pure Casino Edmonton, Pure Casino Yellowhead, Pure Casino Calgary and Pure Casino Lethbridge. Each of the properties are based in Alberta, Canada.
The deal was financed with a combination of cash and funds drawn from VICI Properties' existing credit facility.
In addition, VICI Properties has entered into a triple-net master lease agreement with Pure, which has an initial total rent of CAD$21.8m to be paid annually and an implied acquisition capitalisation rate of 8.0%. The initial term is 25 years, with four 5-year tenant renewal opportunities.
“Over the last five and a half years, VICI has built a portfolio of market-leading experiential real estate,” said John Payne, president and chief operating officer of VICI Properties. “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.”