Century Casinos completes sale of Century Canadian portfolio
The annual rent escalator on the properties is capped at 2.5%.
Century Casinos has completed the sale of its four properties in Alberta, Canada.
The four real estate assets are: Century Casino & Hotel Edmonton, Century Casino St. Albert and Century Mile Racetrack and Casino in Edmonton in Alberta, and Century Downs Racetrack and Casino.
Century Casinos sold its Century Canadian portfolio to subsidiaries of Vici Properties for an aggregate purchase price of CA$221.7m (US$162.4m) in cash.
Century retained circa CA$154.5m of the purchase price after taking into account the purchase of the Century Downs land, selling expenses, Canadian and US taxes and proceeds that are to be paid to the minority owners of Century Downs.
Simultaneously, with the closing of the transaction, the Century Canadian portfolio was added to the existing ‘triple-net master lease agreement’ between subsidiaries of Vici and subsidiaries of the company (the Master lease); increasing annual rent by CA$17.3m.
The annual rent escalator related to the four properties is capped at 2.5%. The lease will have a full 15-year initial base lease term, with four five-year renewal options.
Stifel acted as the exclusive financial advisor to the company, and Faegre Drinker Biddle & Reath LLP and Field LLP acted as legal counsel in connection with the transaction.
Co-CEOs of Century Casinos, Erwin Haitzmann and Peter Hoetzinger, commented, “We are pleased to extend our good partnership with VICI to our Canada portfolio.
“This transaction provides us with the ability to pay down our debt and with greater financial flexibility as we continue to grow.”
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