- Legal States
Julie Moraine December 6, 2022 2 min read
VICI Properties to Fund Century Casinos Caruthersville Expansion
Experiential real estate investment trust (REIT) VICI Properties announced plans to use its Partner Property Growth Fund and finance an expansion project for Century Casinos in Missouri.
Financing New Casino Project
VICI Properties will provide the funds for a new land-based casino project at Century Casino Caruthersville, in Caruthersville, Missouri, comprising a casino and an adjacent 38-room hotel tower.
John Payne, president and chief operating officer of VICI Properties, focused on the continuous growth of the partnership with Century Casinos in his comments, highlighting developments related to the partnership’s previous acquisitions.
“Since we jointly acquired three regional assets in 2019, the Century team has significantly enhanced performance at the properties by fine-tuning operations and focusing intently on customer satisfaction,” Payne pointed out.
Turning to the current project, Payne outlined that the transaction is structured to enhance the long-term value of the property in Caruthersville, give Century flexibility around its balance sheet, and VICI Properties an opportunity to “grow its AFFO without the need for external funding.”
VICI Properties will provide approximately $51.9 million and will own the real estate improvements associated with these projects, while annual rent under the master lease with Century will increase by approximately $4.2 million once the project is complete. VICI and Century will sign an amendment to the existing master lease before commencing the projects.
Complementing Amenities with Nature Views
The new casino project at Century Casino Caruthersville received preliminary approval from the Missouri Gaming Commission (MGC) in December 2021 but will require additional state and local approvals, including final approval from the MGC once construction work on the casino is completed.
Set to replace the last remaining riverboat casino on open water in Missouri, the new land-based casino at Century Casino Caruthersville will feature a hotel lobby, restaurant, bar, lounge, multi-purpose meeting rooms and offices.
The gaming floor will commence operations with 650 slot machines, table games, a deli, and a bar, and will have the possibility to expand its gaming offering with up to 140 additional slot machines
The hotel tower comprising 38 rooms will sit between the existing pavilion and the new casino and will offer its guests amazing views over the Mississippi River and the Caruthersville.
Last month, VICI announced plans to raise $509.9 million in new capital by offering 16.5 million of its common shares to underwriters.
Around the same time, Nasdaq-listed Century Casinos reported a 74% drop in net earnings attributable to shareholders in the third quarter of 2022.