Century Casinos, Inc. announced that it had completed the sale of the real estate assets of Century Casino and Hotel Edmonton, Century Casino St. Albert and Century Mile Racetrack and Casino in Edmonton, Alberta and Century Downs Racetrack and Casino to subsidiaries of VICI Properties Inc. for an aggregate purchase price of CAD $221.7 million in cash.
The Company retained approximately CAD $154.5 million of the purchase price after giving effect to the purchase of the Century Downs land, selling expenses, Canadian and United States taxes and proceeds to be paid to the minority owners of Century Downs.
Simultaneous with the closing of the transaction, the Century Canadian Portfolio was added to the existing triple-net master lease agreement between the subsidiaries of VICI and the subsidiaries of the company, and annual rent will increase by CAD $17.3 million. The annual rent escalator related to the Century Canadian Portfolio is capped at 2.5 percent. Additionally, the term of the Master Lease will be extended such that, upon closing of the transaction, the lease will have a full 15-year initial base lease term, with four five-year renewal options.
Co-Chief Executive Officers of Century Casinos, Erwin Haitzmann and Peter Hoetzinger, said that the deal was a pleasing accomplishment for the company.
"This transaction provides us with the ability to pay down our debt and with greater financial flexibility as we continue to grow."
