Century Casinos enters CA$221m leaseback agreement with VICI
This latest contract will involve four of the operator’s properties in the Canadian province of Alberta, including two racecourses and two casinos in Edmonton and Calgary. From the total purchase amount of over 220 million Canadian dollars, just over 192 million will be directly paid to Century Casinos, while the remaining over 29 million Canadian dollars will be paid to the minority owners of the Century Downs racecourse in Calgary.
This agreement will be added to the two companies’ pre-existing property leasing contract, as a result of which Century Casinos will be paying over 17 million Canadian dollars more every year to VICI Properties as rent. Moreover, this longstanding leasing agreement will be extended by 15 years upon completion of the newest transaction, with four further renewal options being available to the operator after the expiration of the initial term.
The co-CEOs of Century Casinos, Peter Hoetzinger and Erwin Haitzmann, stated:
“The latest contract extension with VICI enables us to take greater advantage of the valuation of our Canadian establishments while maintaining our operations in Alberta. We are looking to utilize the funds from this sale to invest in our recently acquired Nugget resort, as well as to pay off some of our company’s debts and return a portion of it to our investors as part of share buyback or dividend programs.”
Lastly, the agreement is estimated to be finalized and completed sometime in the second half of the year.