Century Casinos Completes $162.4M Canadian Real Estate Sale
Date: 2023-09-07 Author: Kirill Zagoruyko Categories: CASINO
Century Casinos sold its real estate assets in Edmonton and Calgary, Alberta to Vici Properties subsidiaries for a total of C$221.7 million (US$162.4 million) in cash.
After accounting for various expenses and taxes, Century Casinos withheld approximately CAD 154.5 million. This includes income that will be paid out to minority owners of Century Downs.
As part of the deal, the Century Canadian portfolio was added to an existing lease between VICI Properties Inc. and Century Casinos, Inc.
This will result in an annual rent increase of CA$17.3 million. Annual rent increases are capped at 2.5% and the base lease has been extended to a full 15 years, renewable four times over 5 years.
Erwin Heitzmann and Peter Hetzinger, co-CEOs of Century Casinos, said: “We are delighted to extend our good partnership with VICI to our portfolio in Canada.
"This deal gives us the ability to repay our debt and greater financial flexibility as we continue to grow."
Stifel acted as the Company's exclusive financial advisor and Faegre Drinker Biddle & Reath LLP and Field LLP acted as the Company's legal advisors in connection with the transaction.
Meanwhile, Century Casinos recently released its Q2 2023 report.
In the second fiscal quarter, the company posted net operating income of $136.8 million, up a significant 23% year-over-year.
After accounting for various expenses and taxes, Century Casinos withheld approximately CAD 154.5 million. This includes income that will be paid out to minority owners of Century Downs.
As part of the deal, the Century Canadian portfolio was added to an existing lease between VICI Properties Inc. and Century Casinos, Inc.
This will result in an annual rent increase of CA$17.3 million. Annual rent increases are capped at 2.5% and the base lease has been extended to a full 15 years, renewable four times over 5 years.
Erwin Heitzmann and Peter Hetzinger, co-CEOs of Century Casinos, said: “We are delighted to extend our good partnership with VICI to our portfolio in Canada.
"This deal gives us the ability to repay our debt and greater financial flexibility as we continue to grow."
Stifel acted as the Company's exclusive financial advisor and Faegre Drinker Biddle & Reath LLP and Field LLP acted as the Company's legal advisors in connection with the transaction.
Meanwhile, Century Casinos recently released its Q2 2023 report.
In the second fiscal quarter, the company posted net operating income of $136.8 million, up a significant 23% year-over-year.
