Century Casinos Inc said it completed the sale of its four real estate assets to subsidiaries of Caesars Palace Las Vegas owner, VICI Properties Inc for CAD 221.7 million (USD $162.4 million) in cash, on late Wednesday.
The company said with closing of the deal, Century Canadian Portfolio was added to the existing triple-net master lease agreement between subsidiaries of VICI and subsidiaries of Century Casinos.
The Mountaineer Casino Resort owner also said that the annual rent will increase by CAD 17.3 million (USD $12.7 million). The company added that the term of the master lease is expected to be extended where at the closing of the deal, the lease will have a full 15-year initial base lease term, with four 5-year renewal options.
The four assets of Colorado Springs-based firm sold includes Century Casino & Hotel Edmonton, Century Casino St. Albert and Century Mile Racetrack and Casino in Edmonton, Alberta and Century Downs Racetrack and Casino in Calgary, Alberta.
“This transaction provides us with the ability to pay down our debt and with greater financial flexibility as we continue to grow,” Erwin Haitzmann and Peter Hoetzinger, co-chief executives of Century Casinos said.
