VICI Properties acquires Alberta casino real estate in $144M deal
The S&P 500 experiential real estate investment trust VICI Properties has agreed to buy the real estate behind three casino venues in Alberta, Canada, in a deal worth $144.4 million (CAD 200.6 million).
New Rent Underway
The transaction, which includes Deerfoot Inn & Casino, Great Northern Casino, and two "limited-service hotels that are adjacent to the Great Northern Casino", is tied to Pure Casino Entertainment Limited Partnership's (PURE) planned private buyout of Gamehost.
Once the deal closes, the properties will be folded into VICI's existing lease agreement with PURE, a move expected to increase annual rent by $11.6 million (CAD 16.1 million), based on an 8.0% acquisition capitalization rate.
Under the updated terms, rent will go up by 1.0% starting from the first February 1 after a full year has passed since closing.
After that, increases will follow the structure already in place in the PURE master lease, rising by either 1.5% or in line with changes in the Canadian consumer price index, whichever is higher.
The lease itself will also be extended, giving it a 25-year base term, with the option of four additional five-year renewals. The obligations tied to the lease will continue to be backed by Indigenous Gaming Partners.
Pending Approvals and Closing Requirements
The deal is expected to close by mid-2026, pending "customary regulatory approvals and closing conditions", and VICI plans to fund it using a mix of "cash on hand and drawing down funds on its existing multicurrency revolving credit facility."
VICI said the acquisition should add to its earnings as soon as the deal is completed.
John Payne, president and chief operating officer of VICI Properties: "We are very excited to deepen and expand our presence in the Canadian gaming market, a very steady and stable gaming jurisdiction, alongside an existing partner."
"Having worked alongside IGP and PURE, we have seen firsthand their ability to operate and grow a best-in-class gaming platform, and we are proud to continue supporting that growth as their real estate partner and capital provider," he added.
Alongside the fresh release regarding the Canadian properties, VICI has also provided a Transaction Overview presentation.
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