The former Caesars subsidiary will purchase the operator’s entire Canadian portfolio, which includes Century Casino & Hotel Edmonton, Century Casino St Albert, Century Mile Racetrack and Casino and Century Downs.
The casinos will be added to existing master lease agreement between Vici and Century. After the deal closes, the operator’s annual rent will increase by $17.3m or 7.8% of the cost of the acquisition.
Vici acquires Century Alberta properties
“This transaction unlocks the real estate value of our Canadian properties while continuing our Canadian operations and provides us with greater financial flexibility as we continue to grow,” Century co-chief executives Erwin Haitzmann and Peter Hoetzinger said.
Century will use the sale to fund improvements at its Nugget Casino Resort in Nevada and for “general corporate purposes”.
They also said they were looking to potentially use some of the proceeds to pay down debt. In addition, they plan to return value to shareholders through stock repurchases or a special dividend.
“We continue to evaluate the optimal use of our capital,” they said.