VICI Properties to Acquire Alberta Casino Real Estate in $144 Million Deal
Overview of the Acquisition
VICI Properties, a real estate investment trust specializing in experiential assets within the S&P 500, has announced its plan to purchase the real estate of three casino locations in Alberta, Canada. The transaction is valued at approximately $144.4 million USD (equivalent to CAD 200.6 million).
Properties and Partnership Details
The acquisition includes the Deerfoot Inn & Casino, Great Northern Casino, and two limited-service hotels situated next to the Great Northern Casino. These properties are connected to Pure Casino Entertainment Limited Partnership’s (PURE) intention to complete a private buyout of Gamehost.
Upon closing, these properties will be added to VICI’s existing lease agreement with PURE. This integration is projected to raise the annual rent by $11.6 million USD (CAD 16.1 million), based on an 8.0% capitalization rate for the acquisition.
Updated Lease Terms
The new lease agreement will include a 1.0% rent increase starting on the first February 1 following a full year after closing. Subsequent rent adjustments will either rise by 1.5% annually or track the Canadian consumer price index changes, whichever rate is higher.
The lease duration will be extended to a 25-year base term, with an option to renew for four additional five-year terms. The lease obligations will continue to be secured by Indigenous Gaming Partners.
Approval Process and Funding
The deal’s completion is anticipated by mid-2026, subject to customary regulatory approvals and closing conditions. VICI plans to finance the purchase through a combination of available cash reserves and its existing multicurrency revolving credit facility.
This acquisition is expected to contribute positively to VICI’s earnings once finalized.
Statements from VICI Leadership
John Payne, President and Chief Operating Officer of VICI Properties, expressed enthusiasm about expanding VICI’s footprint in the Canadian gaming sector, describing it as a stable and dependable market. He highlighted the productive partnerships with Indigenous Gaming Partners and PURE, praising their capability to manage and grow a premier gaming platform.
Payne also affirmed VICI’s commitment to supporting the continued growth of this gaming platform as their real estate partner and capital provider.
Additional Information
Alongside this announcement, VICI Properties has released a comprehensive Transaction Overview presentation detailing the acquisition.
