VICI and Foundation Gaming Ink Sale-Leasebacks for Two Mississippi Casinos

VICI Properties, an owner and acquirer of experiential real estate assets across leading gaming, hospitality, entertainment and leisure destinations, has purchased the Fitz Casino & Hotel and the WaterView Casino & Hotel properties from Foundation Gaming & Entertainment.

VICI Acquires Two Casinos in a Sale-Leaseback Deal

The sale-leaseback deal saw the real estate specialist pay $293.4 million in cash for the acquisition. As agreed, Foundation Gaming will lease back the two venues following the sale.

As outlined in the agreement, VICI entered into a triple-net master lease agreement that will see Foundation Gaming lease back the properties. Under the terms of the Foundation Master Lease, the casino holding will pay $24.25 million a year to continue operating the two casinos.

This notably represents an implied acquisition capitalization rate of 8.3% with an initial term of 15 years. The agreement can be further extended for four extra periods of 5 years.

Fitz Casino & Hotel and the WaterView Casino & Hotel are two Mississippi gaming and hospitality properties located in Tunica and Vicksburg respectively. Both of them are operated by Foundation Gaming & Entertainment and have dedicated experienced teams of industry specialists.

Foundation Gaming acquired WaterView Casino which was originally founded in 1993, in 2015. Three years later, the company also purchased Fitz Casino, which, on the other hand, was founded in 1994.

Taking a look at what the properties have to offer, WaterView has a 37,000-square-foot casino area, where visitors can sit at one of the ten gaming tables or play with one of the 650 slot machines. The casino offers three food and beverage options for its customers who can then stay in one of its hotel rooms.

Fitz Casino, on the other hand, offers a sportsbook, nine gaming tables and 864 slots. It also has six restaurants, providing its guests with a varied choice of dining.

The Two Foundation Gaming Casinos Will Expand VICI’s Portfolio

Thanks to the agreement with Foundation Gaming & Entertainment, VICI Properties now has another major ally and tenant, further strengthening its portfolio. For reference, the real estate company has similar deals with major industry leaders, including Caesars, MGM Resorts, Century Casinos and others.

VICI Properties is the biggest owner of properties on the Las Vegas Strip. It owns many of the big casinos there, including almost all of MGM Resorts’ venues. In addition, the company owns the famous Caesars Palace and the beloved The Venetian. Now that VICI has asserted its dominance in Las Vegas, it is also eyeing further expansion in Mississippi and has already inked major deals in the state.