Real estate, operations separated
VICI Properties Inc. is buying the Rocky Gap Casino Resort in Flintstone, Maryland from Golden Entertainment in an all-cash deal worth $260m. The real estate investment trust (REIT) announced its plan on Thursday. It will lease the operations of the casino resort to Century Casinos.
Century Casinos will pay annual rent of $15.5m to VICI
Specifically, VICI is paying $203.9m for the property’s land and buildings, while Century Casinos is paying $56.1m for the property’s operations. Century Casinos will pay annual rent of $15.5m to VICI; the two companies already have a master lease agreement in place that covers other properties.
There initial lease term will be for 15 years, with four additional five-year renewal period options. The current timeline is for the deal to fully close in the middle of 2023 after getting the relevant regulatory approval and meeting respective closing conditions.
Century Casinos expanding its reach
Speaking about the acquisition, VICI Properties chief operating officer and president John Payne said: “We are very excited to expand our existing partnership with Century, given their strong track record of integrating and operating similar high-quality regional resort assets.”
He believes that the deal will give all parties the ability to create significant value for their shareholders.
Century Casinos will soon operate more than ten casinos across North America. Century Casinos co-chief executive Peter Hoetzinger and Erwin Haitzmann said that as a result of the Rocky Gap Casino deal and its pending acquisition of the Nugget Casino Resort in Canada that it will “oversee a US portfolio that reaches from east to west.”
The company will work closely with the Maryland Lottery and Gaming Control Agency to get the relevant regulatory approvals.
A comprehensive portfolio
The Rocky Gap Casino Resort currently offers 630 slot machines, two casino bars, and 16 table games. In addition to the 25,000-square-foot casino, there is also a hotel, comedy club, conference center, and numerous other amenities. Golden Entertainment had only recently invested about $10m to make improvements to the property.
the company has more than 42 gaming facilities on its roster
VICI Properties has built up an impressive portfolio of gambling-related properties in recent years. Some of the most iconic properties on its books include the Venetian Resort Las Vegas, the MGM Grand, and Caesars Palace. All told, the company has more than 42 gaming facilities on its roster. Some of the major casino companies it has a relationship with include Caesars Entertainment, Hard Rock International, Penn National Gaming, and MGM Resorts International.