Century Casinos Sells Real Estate Assets in Alberta

High-profile NA gambling company Century Casinos has completed the sale of its Edmonton and Calgary real estate assets to Vici Properties subsidiaries in a CAD 221.7 million ($162.31 million) agreement. The deal has allowed Century Casinos to secure significant proceeds and adjust its lease agreement with VICI.

Streamlining Efforts Should Pay Long-Term Dividends

Century Casinos first inked the sale-leaseback deal in May, hoping the transaction would “unlock the real estate value” of the operator’s Canadian portfolio. The agreement with VICI saw the operator sell four of its assets in Edmonton and Calgary, adding them to the existing triple-net master lease agreement between the two companies.

As a result of the sale, annual rent increased by CAD 17.3 million ($12.67 million). The agreement also extended the master lease term to 5 years with the option for four 5-year renewals and capped the annual rent increase to 2.5%. Century Casinos co-CEO Peter Hoetzinger was optimistic that the extra capital would aid the company’s long-term plans and growth ambitions.

“This transaction provides us with the ability to pay down our debt and with greater financial flexibility as we continue to grow.”

Peter Hoetzinger, co-CEO at Century Casinos

Accounting for various expenses and taxes associated with the sale leaves Century Casinos with approximately CAD 154.5 million ($113.08 million). Some of these funds will be allocated as payments to Century Downs minority owners but should still be sufficient to significantly improve the operator’s financial standing and open new opportunities. 

The Operator Remains Highly Competitive

Century Casinos’ restructuring efforts perfectly align with its rising revenues to bolster its competitiveness. Directing resources toward expanding and optimizing its core gaming operations should result in significant returns and maximize shareholder value. The strategic realignment also strengthens Century Casinos’ bond with Vici Properties, leveraging their mutually beneficial lease agreement to foster sustained growth.

Overall, the Edmonton and Calgary real estate asset sale marks a significant milestone for Century Casinos, helping it retain its regional leadership position. This strategic move underscores the operator’s determination to remain at the forefront of the gaming sector while exploring new avenues for innovation and development.

As Century Casinos continues to evolve and adapt to the changing dynamics of the gaming industry, the company remains committed to providing unparalleled gaming experiences and driving positive outcomes for its shareholders and stakeholders. The operator will continue delivering outstanding gaming and entertainment offerings to its patrons, positioning itself for a bright future of growth and expansion.