The real estate investment trust Vici Properties has agreed to purchase the Alberta assets of Colorado-based Century Casinos in a sale and leaseback transaction for CAN$221.7m ($164.3m/PS132.4m/EUR152.5m).
The former Caesars subsidiary is buying the entire Canadian portfolio of the operator, including Century Casino & Hotel Edmonton and Century Casino St. Albert. Century Mile Racetrack & Casino, and Century Downs will also be purchased.
The casino will be added to the existing master lease between Vizi, and century. The operator’s rent will rise by $17.3m, or 7.8%, after the deal is closed.
Vici acquires Century Alberta properties
Century’s co-chief executives Erwin Haitzmann, and Peter Hoetzinger, said that the transaction “unlocks the real property value of our Canadian assets while continuing our Canadian operation and gives us greater financial flexibility in order to continue our growth.”
Century plans to use the proceeds of this sale to improve its Nugget Casino Resort and for “general corporate purposes”.
Also, they said that some proceeds could be used to reduce debt. They also plan to return value through stock repurchases and a special dividend.
They said, “We continue to assess the optimal use our capital.”