Strategic Move in Real Estate: Vici Properties Dives into Bowling Entertainment Sector

In a groundbreaking sale-leaseback transaction, Vici Properties has acquired a total of 38 bowling entertainment centers from Bowlero Corp., at an impressive aggregate purchase price of $432.9 million. This acquisition aligns perfectly with Vici Properties' overarching investment strategy, which focuses on assets that exhibit lower cyclicality, minimal secular threats, proven durability, and favorable supply and demand dynamics.

As part of this new venture, Vici Properties has entered into a triple-net master lease agreement with Bowlero, marking the beginning of an exciting partnership. Under this lease agreement, an initial total annual rent of $31.6 million has been structured, reflecting an acquisition cap rate of 7.3%.

These acquisitions are a testament to Vici Properties' ongoing expansion strategy, which includes recent forays into the Canadian market through partnerships with Century Casinos. Notable properties acquired in this venture include Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino in Edmonton, Alberta, and Century Downs Racetrack and Casino in Calgary, Alberta.

The lease terms for these transactions have been established with a 15-year initial base term, along with an option for four additional 5-year renewals. This ensures not only long-term potential but also financial flexibility for both parties involved.

Vici Properties has been demonstrating financial growth and stability in recent years. In 2021, the company achieved a remarkable milestone by generating a total revenue of $1.5 billion, representing an impressive 23.2% year-on-year growth. This strategic move into the bowling entertainment sector further solidifies Vici Properties' position in the market.