VICI Properties has successfully closed a $144.4 million acquisition of Deerfoot Inn & Casino, Great Northern Casino, and two nearby hotels in Alberta, enhancing its portfolio. The deal, part of a larger transaction with Pure Casino Entertainment, includes a long-term lease agreement with increased annual rent.
This week, VICI Properties announced a significant expansion of its portfolio through the acquisition of the real estate assets of Deerfoot Inn & Casino, Great Northern Casino, and two limited-service hotels located in Alberta, Canada. The total value of this transaction stands at $144.4 million (CAD$200.6 million). This acquisition is closely tied to the recent closing of Pure Casino Entertainment Limited Partnership's initiative to take Gamehost private.
To finance this acquisition, VICI utilized a draw from its multicurrency revolving credit facility, specifically denominated in Canadian dollars. Following the completion of the real estate transaction, the newly acquired properties were integrated into an existing triple-net master lease agreement with Pure Casino Entertainment, known as the PURE Master Lease. This integration resulted in an increase of annual rent by $11.6 million (CAD$16.1 million).
What this means is that beginning February 1, 2028, the rent for these properties will see an escalation of 1%. Future escalations will align with the terms of the PURE Master Lease, ensuring increases at a minimum of 1.5% or in line with the Canadian Consumer Price Index (CPI), capped at 2.5%.
The PURE Master Lease has been extended to feature a robust 25-year initial base lease term. Furthermore, this agreement includes four options for the tenant to renew the lease for an additional five years each. This long-term commitment underlines VICI Properties' strategy of securing stable, income-generating assets in the gaming sector.
Additionally, the obligations of the tenants under the PURE Master Lease remain secured by Indigenous Gaming Partners, ensuring a layer of financial stability and confidence in the continued operation of these properties.
This acquisition reflects VICI Properties' ongoing strategy to enhance its footprint in the gaming industry while providing long-term value through strategic lease agreements.
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