Casino entertainment company Century Casinos announced that its subsidiary Century Resorts Alberta (CRA) entered into a definitive agreement to sell its Calgary property in a deal for some $6.5 million.
Century Casinos Agrees to Sell Calgary Property
Announced on Thursday this week, Century Casinos said that its subsidiary entered into a definitive agreement on January 12 to sell the building, as well as the land of its property located in Calgary, Alberta, Canada. The buyer of the property is Rowanwood Financial Properties Ltd.
According to a statement released by Century Casinos, the price tag of the deal is set at CA$8.1 million ($6.5 million) based on the exchange rate as of January 12, 2022. Initially, Rowanwood has paid CA$0.7 million ($557,851) for the property. The remaining CA$7.4 million ($6 million) is expected to be paid upon closing the deal.
It is important to mention that the remaining CA$7.4 million of the deal is subject to adjustments related to property taxes, as well as other expenses and revenues related to the property. With that in mind, Century Casinos revealed that it is expected to close the deal within 30 days.
CRA Will No Longer Operate the Century Sports Venue
Previously known as the Silver Dollar Casino, Century Casinos obtained the Calgary property back in 2010. That deal was with a price tag of some $10.5 million. More recently, the CRA sold the casino operations of Century Casino Calgary back in December 2020 to New Star Capital affiliate 2267166 Alberta Ltd. The price tag for the deal was for some CA$10.0 million, but since then, CRA has continued to operate Century Sports, a sports bar, bowling and entertainment facility located on another portion of the property. However, now that the property is being acquired by Rowanwood, the CRA will cease operating Century Sports. Moreover, the subsidiary is going to transfer the lease agreement for the premises to Rowanwood.
Colorado-based Century Casinos currently operates properties around the US as well as in Canada. The company was one of the many operators that have felt the negative impact of the pandemic, considering restrictions implemented in Canada and the US due to the spread of the respiratory infection. Despite the difficulties brought by the pandemic, during Q3, 2021, the company reported a significant increase in revenue. Revenue for the period hit $116.6 million, marking a 202.7% year-on-year increase.