Real estate investment trust VICI Properties announced that it has acquired the real estate assets of four casinos located in Alberta, Canada, marking the company’s first international investment.
VICI will acquire the real estate or Pure Casino Edmonton in Edmonton, Pure Casino Yellowhead in Edmonton, Pure Casino Calgary in Calgary and Pure Casino Lethbridge in Lethbridge, from Pure Canadian Gaming Corp. for an aggregate purchase price of approximately C$271.9 million (US$200.8 million).
VICI financed the transaction with a combination of cash on hand and from drawing down funds under its existing revolving credit facility in Canadian dollars.
Simultaneous with the acquisition, VICI entered into a triple-net master lease agreement with Pure covering the Pure Portfolio. The lease has an initial total annual rent of approximately C$21.8 million (US$16.1 million,) representing an implied acquisition capitalization rate of 8 percent, and an initial term of 25 years, with four five-year tenant renewal options.
“Over the last five and a half years, VICI has built a portfolio of market-leading experiential real estate,” said John Payne, president and chief operating Officer of VICI Properties. “Today’s announcement marks another momentous first for VICI as we expand our footprint internationally into Canada with the acquisition of the Pure portfolio.
“This transaction highlights our ability to source, structure and fund cross-border transactions, widening our opportunity set as we continue along our growth trajectory. We are pleased to add Pure as our eleventh tenant and look forward to a mutually beneficial partnership.”
