VICI Properties has reached an settlement to purchase a bunch of gaming and hospitality belongings in Alberta, Canada, as a part of a broader transaction linked to the privatization of Gamehost. The deal, valued at roughly CAD$200.6 million (USD$144.4 million), contains the actual property of Deerfoot Inn & Casino, Great Northern Casino, and two resorts positioned close to the Grande Prairie property.
The acquisition will combine these belongings into VICI’s present lease association with Pure Casino Entertainment Limited Partnership, additional strengthening the corporate’s footprint in the Canadian gaming sector.
Portfolio Addition Tied to Gamehost Transaction
The actual property buy is linked to Pure Casino Entertainment’s deliberate take-private acquisition of Gamehost, a Toronto-listed operator with a portfolio of on line casino properties in Alberta. Once the deal closes, the acquired properties will grow to be a part of the present triple-net grasp lease between VICI and PURE.
Under the up to date lease construction, annual lease will improve by CAD$16.1 million (USD$11.6 million), reflecting an acquisition capitalization charge of 8.0%. The settlement outlines a structured escalation schedule, starting with a 1.0% lease improve after the primary full yr following closing. Subsequent changes will observe the present lease phrases, growing by the better of 1.5% or modifications within the Canadian Consumer Price Index, capped at 2.5%.
The revised lease may also prolong the settlement to a 25-year preliminary base time period, supported by 4 further five-year renewal choices. Tenant obligations below the lease will proceed to be assured by Indigenous Gaming Partners.
Strategic Expansion in Canadian Market
The transaction marks a continuation of VICI’s technique to develop inside steady gaming jurisdictions. Company management pointed to its ongoing relationship with PURE and Indigenous Gaming Partners as a think about transferring ahead with the deal.
John Payne, President and Chief Operating Officer of VICI Properties, said in the company’s press release, “We are very excited to deepen and expand our presence in the Canadian gaming market, a very steady and stable gaming jurisdiction, alongside an existing partner.”
He continued, “Having worked alongside IGP and PURE, we have seen firsthand their ability to operate and grow a best-in-class gaming platform, and we are proud to continue supporting that growth as their real estate partner and capital provider. This is exactly the kind of transaction that reflects VICI’s value proposition, helping best-in-class operators execute on their growth strategies, and we hope to continue growing our relationship with IGP and PURE for years to come.”
Indigenous Gaming Partners, which ensures the lease obligations, is a partnership involving a number of Nova Scotia-based First Nations alongside Sonco Gaming. Through its subsidiary PURE, the group operates gaming properties throughout Alberta and is at the moment advancing its acquisition of Gamehost’s belongings.
VICI plans to fund the acquisition utilizing a mix of accessible money and borrowings from its present multi-currency revolving credit score facility. The firm expects the transaction to shut in mid-2026, topic to normal regulatory approvals and different closing situations.
Upon completion, the acquisition is predicted to contribute positively to VICI’s monetary efficiency. The addition of latest rental earnings and long-term lease stability aligns with the corporate’s enterprise mannequin, which focuses on proudly owning experiential actual property belongings leased to gaming and leisure operators.
VICI Properties at the moment manages a broad portfolio that features dozens of gaming venues and hospitality belongings throughout North America. Its holdings function main locations corresponding to Caesars Palace Las Vegas, MGM Grand, and The Venetian Resort Las Vegas, alongside different experiential properties.
