The acquisition is expectedto close in the second half of this year. Credit: Bishnu Sarangi from Pixabay.

US-based real estate investment trust VICI Properties has entered definitive agreements to acquire the real estate assets of the Century Canadian Portfolio from Century Casinos for an estimated value of C$221.7m ($164.7m).

The portfolio consists of the Century Casino and Hotel Edmonton, Century Casino St. Albert and Century Mile Racetrack and Casino, each located in Edmonton, Alberta, as well as the Century Downs Racetrack and Casino, located in Calgary, Alberta.

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In line with transaction completion, the Century Canadian Portfolio will be included in VICI Properties and Century’s existing triple-net master lease agreement (the Century Master Lease).

According to VICI, annual rent will be boosted by $12.8m, representing an actual acquisition capitalisation rate of 7.8%.

The property-level rent coverage ratio under the Century Master Lease is estimated to be around 2.0 times after compensating for the pending acquisition of Rocky Gap Casino Resort and the Century Canadian Portfolio. The transaction is anticipated to be immediately beneficial to VICI.

Furthermore, the Century Master Lease will be extended to ensure that, upon transaction completion, the lease will carry a full 15-year initial base lease term, with four five-year tenant renewal possibilities.

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Century Casinos will continue to guarantee the tenant’s obligations under the Century Master Lease.

VICI Properties president and COO John Payne said: “We are thrilled to announce our third international investment with the acquisition of Century’s four Canadian casino assets, demonstrating our ongoing desire to expand internationally and confidence in the Canadian gaming market.

“We are also pleased to continue growing our partnership with Century by supporting their asset monetisation strategy, unlocking value that fuels their strategic growth initiatives.”

The acquisition is expected to close in the second half of 2023, subject to customary regulatory approvals and closing conditions.