VICI Properties Teams Up with IGP to Grow Canadian Gaming Portfolio

VICI Properties Inc., a key player in experience-based real estate, has struck a deal to change its master lease agreement with PURE Canadian Gaming Corp. This move allows Indigenous Gaming Partners Inc. (IGP) to buy PURE’s operating assets. The deal represents a big move in VICI‘s growth beyond its borders and highlights its aim to expand together with partners in the gaming world.

IGP and VICI Join Forces to Create Strong Gaming Presence in North America

IGP, a new partnership of five First Nations, plans to create a strong set of gaming assets across North America. This deal includes PURE’s four casino properties in Alberta: Pure Casino Edmonton, Pure Casino Yellowhead, Pure Casino Calgary, and Pure Casino Lethbridge. VICI bought these assets in January 2023 as its first step outside the US paying CAD271.9 million ($200.8 million).

VICI’s lease terms with PURE stay the same under the changed agreement. The lease runs for 25 years with four 5-year renewal options. Yearly rent starts at CAD22 million ($15.5 million). Rent goes up starting in the third year, with changes linked to inflation. The deal also requires spending 1% of yearly net revenue on capital improvements.

This deal gives VICI a five-year right to first offer (ROFO) on future sale-leaseback deals for IGP properties. This opens a way for VICI to grow more in the Canadian gaming market.

On the other hand, IGP‘s team-up with Sonco Gaming Inc., a Canadian company that knows a lot about building and running casinos, brings in more know-how. Sonco will help IGP find new chances and look after the casinos they buy.

VICI Joins Forces with IGP to Expand Beyond Las Vegas

Danny Valoy, VICI’s vice president of business development and acquisitions, noted: “This transaction demonstrates VICI’s ability to collaboratively work with existing partners while building new relationships with highly experienced operators and First Nations in international jurisdictions. We are pleased to welcome IGP as a new partner, and we look forward to expanding our relationship with IGP and Sonco as they pursue additional growth opportunities in the future.”

This growth fits with VICI’s wider plan to spread out and team up with top operators. Even though the Canadian properties are not as big as some US ones, they mark a key move in the company’s work to reduce its dependence on Las Vegas where VICI owns the land of famous spots like Caesars Palace and the Venetian.

To IGP, this purchase is a turning point in its goal to create economic chances for Indigenous groups making the most of the strengths of both its First Nations partners and experienced industry players like Sonco.