NEW YORK–VICI Properties Inc. (NYSE: VICI) (“VICI Properties” or the “Company”), an experiential real estate investment trust, today announced it has, together with Century Casinos, Inc. (NASDAQ: CNTY) (“Century”), entered into definitive agreements to acquire Rocky Gap Casino Resort (“Rocky Gap”), located in Flintstone, Maryland from Golden Entertainment, Inc. (NASDAQ: GDEN) (“Golden Entertainment”) for an aggregate purchase price of $260.0 million in cash.
Pursuant to the transaction agreements, the Company will acquire an interest in the land and buildings associated with Rocky Gap for approximately $203.9 million, representing a 7.60% capitalization rate, and Century will acquire the operating assets of the property for approximately $56.1 million. Simultaneous with the closing of the transaction, Rocky Gap will be added to the existing triple-net master lease agreement between VICI Properties and Century (the “Century Master Lease”) and annual rent will increase by $15.5 million. The transaction is expected to be accretive immediately upon closing.
Additionally, the term of the Century Master Lease will be extended such that, upon closing of the transaction, the lease will have a full 15-year initial base lease term, with four 5-year tenant renewal options. The tenant’s obligations under the Century Master Lease will continue to be guaranteed by Century Casinos, Inc.
John Payne, President and Chief Operating Officer of VICI Properties, 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, while also working with Blake Sartini, Charles Protell and the team at Golden Entertainment to help them achieve their strategic objectives. This transaction allows each of our companies to efficiently create value for our respective shareholders.”
The transaction is subject to customary regulatory approvals and closing conditions and is expected to close in mid-2023.
In addition to this release, the Company has furnished a Transaction Overview presentation, which is available on our website in the “Investors” section, under the menu heading “Events & Presentations.”