Intelligence
Canada hotels record first occupancy decline in three months
After three consecutive months of year-over-year increases, Canada’s hotel industry recorded a decline in occupancy, according to CoStar’s July 2024 data.
News
Century Casinos, Inc. completes sale‑leaseback of four properties in Alberta
Century Casinos, Inc. has announced that it completed the sale of the real estate assets of Century Casino & Hotel Edmonton, Century Casino St. Albert and Century Mile Racetrack and Casino ("Century Downs") in Edmonton, Alta. and Century Downs Racetrack and Casino in Calgary, Alta. (collectively, the "Century Canadian Portfolio")—to subsidiaries of VICI Properties Inc. for an aggregate purchase price of CAD 221.7 million in cash.
The company retained approximately CAD 154.5 million of the purchase price after giving effect to the purchase of the Century Downs land, selling expenses, Canadian and US taxes and proceeds to be paid to the minority owners of Century Downs.
Simultaneous with the closing of the transaction, the Century Canadian Portfolio was added to the existing triple-net master lease agreement between subsidiaries of VICI and subsidiaries of the company—and annual rent will increase by CAD 17.3 million. The annual rent escalator related to the Century Canadian Portfolio is capped at 2.5 per cent. Additionally, the term of the 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 renewal options.
"We are pleased to extend our good partnership with VICI to our Canada portfolio," Erwin Haitzmann and Peter Hoetzinger, co-chief executive officers of Century Casinos, remarked. "This transaction provides us with the ability to pay down our debt and with greater financial flexibility as we continue to grow," Haitzmann and Hoetzinger concluded.
Stifel acted as exclusive financial advisor to the company, and Faegre Drinker Biddle & Reath LLP and Field LLP acted as legal counsel to the Company in connection with the transaction.
*Based on the exchange rate USD/CAD 0.7325.
