Vici Properties, a real estate investment trust, will purchase the Alberta assets of Colorado-based Century Casinos in a sale and leaseback transaction for CAN$221.7m (US$164.3m).
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 Century and Vizi. 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: “This transaction unlocks real estate values of our Canadian properties and continues our Canadian operations while providing us with greater flexibility in our financial planning as we continue to expand.”
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.”
Century’s operating revenue in 2022 was US$430.5m, a 10.8% increase over its results for the full year of 2021. The company’s profits fell 37.6%, to $13.6m.
We are delighted to announce that we have made our third international investment, with the purchase of Century’s Canadian casino assets. This acquisition demonstrates Vici’s desire to continue expanding internationally, and our confidence in the Canadian gambling market,” said Vici’s President and Chief Operating Officer of Properties John Payne.
We are pleased to grow our partnership with Century, by supporting their asset-monetization strategy and unlocking the value that fuels strategic growth initiatives.