VICI Properties has reached an settlement to amass a gaggle of gaming and hospitality property in Alberta, Canada, as a part of a broader transaction linked to the privatization of Gamehost. The deal, valued at roughly CAD$200.6 million (USD$144.4 million), contains the actual property of Deerfoot Inn & On line casino, Nice Northern On line casino, and two motels positioned close to the Grande Prairie property.
The acquisition will combine these property into VICI’s present lease association with Pure On line casino Leisure Restricted Partnership, additional strengthening the corporate’s footprint within the Canadian gaming sector.
Portfolio Addition Tied to Gamehost Transaction
The actual property buy is related to Pure On line casino Leisure’s deliberate take-private acquisition of Gamehost, a Toronto-listed operator with a portfolio of on line casino properties in Alberta. As soon as the deal closes, the acquired properties will develop into a part of the present triple-net grasp lease between VICI and PURE.
Underneath the up to date lease construction, annual hire will enhance by CAD$16.1 million (USD$11.6 million), reflecting an acquisition capitalization charge of 8.0%. The settlement outlines a structured escalation schedule, starting with a 1.0% hire enhance after the primary full 12 months following closing. Subsequent changes will observe the present lease phrases, rising by the larger of 1.5% or modifications within the Canadian Shopper Value Index, capped at 2.5%.
The revised lease can even lengthen the settlement to a 25-year preliminary base time period, supported by 4 extra five-year renewal choices. Tenant obligations below the lease will proceed to be assured by Indigenous Gaming Companions.
Strategic Enlargement in Canadian Market
The transaction marks a continuation of VICI’s technique to increase inside secure gaming jurisdictions. Firm management pointed to its ongoing relationship with PURE and Indigenous Gaming Companions as a think about transferring ahead with the deal.
John Payne, President and Chief Working Officer of VICI Properties, stated within the firm’s press launch, “We’re very excited to deepen and increase our presence within the Canadian gaming market, a really regular and secure gaming jurisdiction, alongside an present companion.”
He continued, “Having labored alongside IGP and PURE, we’ve got seen firsthand their means to function and develop a best-in-class gaming platform, and we’re proud to proceed supporting that progress as their actual property companion and capital supplier. That is precisely the form of transaction that displays VICI’s worth proposition, serving to best-in-class operators execute on their progress methods, and we hope to proceed rising our relationship with IGP and PURE for years to return.”
Indigenous Gaming Companions, which ensures the lease obligations, is a partnership involving a number of Nova Scotia-based First Nations alongside Sonco Gaming. By way of its subsidiary PURE, the group operates gaming properties throughout Alberta and is at the moment advancing its acquisition of Gamehost’s property.
VICI plans to fund the acquisition utilizing a mix of obtainable money and borrowings from its present multi-currency revolving credit score facility. The corporate expects the transaction to shut in mid-2026, topic to plain regulatory approvals and different closing circumstances.
Upon completion, the acquisition is predicted to contribute positively to VICI’s monetary efficiency. The addition of latest rental revenue and long-term lease stability aligns with the corporate’s enterprise mannequin, which focuses on proudly owning experiential actual property property leased to gaming and leisure operators.
VICI Properties at the moment manages a broad portfolio that features dozens of gaming venues and hospitality property throughout North America. Its holdings characteristic main locations corresponding to Caesars Palace Las Vegas, MGM Grand, and The Venetian Resort Las Vegas, alongside different experiential properties.
