(AsiaGameHub) – VICI Properties, an experiential real estate investment trust listed on the S&P 500, has reached an agreement to acquire the real estate assets of three casino locations in Alberta, Canada, in a transaction valued at $144.4 million (CAD 200.6 million).
New Rent Underway
This acquisition, encompassing the Deerfoot Inn & Casino, the Great Northern Casino, and two limited-service hotels adjacent to the Great Northern Casino, is connected to Pure Casino Entertainment Limited Partnership‘s (PURE) proposed private acquisition of Gamehost.
Upon closing, these properties will be integrated into VICI’s current master lease with PURE, a step projected to boost annual rental income by $11.6 million (CAD 16.1 million), calculated using an 8.0% acquisition capitalization rate.
As per the revised lease agreement, rent will increase by 1.0% commencing on the first February 1st following a full year after the deal’s close.
Subsequent rent escalations will adhere to the existing formula in the PURE master lease, increasing by either 1.5% annually or according to the Canadian consumer price index, whichever amount is greater.
The lease’s duration will also be lengthened, establishing a 25-year initial term and granting the option for four five-year renewal periods. The lease obligations will remain guaranteed by Indigenous Gaming Partners.
Pending Approvals and Closing Requirements
Subject to obtaining “customary regulatory approvals and closing conditions,” the transaction is anticipated to be finalized by mid-2026. VICI intends to finance the purchase through a combination of “cash on hand and drawings under its existing multicurrency revolving credit facility.”
The company stated that the acquisition is expected to be immediately accretive to its earnings upon completion.
John Payne, president and chief operating officer of VICI Properties: “We are very excited to deepen and expand our presence in the Canadian gaming market, a very steady and stable gaming jurisdiction, alongside an existing partner.”
“Having worked alongside IGP and PURE, we have seen firsthand their ability to operate and grow a best-in-class gaming platform, and we are proud to continue supporting that growth as their real estate partner and capital provider,” he added.
In addition to this announcement about the Canadian assets, VICI has also released a Transaction Overview presentation.
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