VICI Properties Inc. (NYSE:VICI) (“VICI Properties” or the “Company”),
an experiential real estate investment trust, today announced it has
completed the previously disclosed transaction to acquire the land and
real estate assets of the Greektown Casino-Hotel (“Greektown”), located
in downtown Detroit, Michigan, for approximately $700 million in cash,
with Penn National Gaming, Inc. (NASDAQ:PENN) (“Penn National” or the
“Tenant”) acquiring the operating assets for approximately $300 million
in cash. The Company financed the transaction using cash on hand.
Simultaneous with the closing of this transaction, Penn National entered
into a triple-net lease agreement with the Company. The lease has an
initial total annual rent of approximately $55.6 million and an initial
term of 15 years, with four 5-year tenant renewal options. The Tenant’s
obligations under the lease are guaranteed by Penn National.
John Payne, President and Chief Operating Officer of VICI Properties,
said, “The Greektown acquisition is our second transaction with Penn
National, further solidifying our relationship with a best-in-class
operator and demonstrating our commitment to deliver portfolio income of
the highest character and quality. In the past five months we have
closed on three large-scale acquisitions, deploying $1.0 billion in
proceeds while adding approximately $100 million of annualized rent, and
broadening our geographic diversity by expanding into two new
jurisdictions.”
David Kieske, Executive Vice President and Chief Financial Officer of
VICI Properties, also commented, “We utilized the cash proceeds on our
balance sheet that we raised during our successful November 2018 equity
issuance to fund the Greektown transaction. Going forward, we continue
to target leverage neutral financing over the long-term and will manage
our balance sheet prudently to maximize transaction accretion while
maintaining flexibility for long-term growth.”
Opened in 2000, Greektown Casino-Hotel is the only casino in the heart
of downtown Detroit and is located in close proximity to nearby
attractions such as Comerica Park, Ford Field, Little Caesars Arena, the
city’s theater district, GM’s Renaissance Center and the Cobo Conference
Center. The casino features 100,000 square feet of casino space,
approximately 2,700 gaming machines and 60 table games, a poker room,
three restaurants, seven fast casual food outlets, four bars and a
coffee shop. In addition, the casino includes a AAA Four Diamond
400-room, luxury high-rise hotel with 14,000 square feet of event and
catering space. The property employs approximately 1,700 team members
and has partnered with nearly 20 local restaurants to offer fine dining
rewards to guests.
About VICI Properties
VICI Properties is an experiential real estate investment trust that
owns one of the largest portfolios of market-leading gaming, hospitality
and entertainment destinations, including the world-renowned Caesars
Palace. VICI Properties’ national, geographically diverse portfolio
consists of 23 gaming facilities comprising over 40 million square feet
and features approximately 15,200 hotel rooms and more than 150
restaurants, bars and nightclubs. Its properties are leased to industry
leading gaming and hospitality operators, including Caesars
Entertainment Corporation and Penn National Gaming. VICI Properties also
owns four championship golf courses and 34 acres of undeveloped land
adjacent to the Las Vegas Strip. VICI Properties’ strategy is to create
the nation’s highest quality and most productive experiential real
estate portfolio. For additional information, please visit www.viciproperties.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the federal securities laws. You can identify these
statements by our use of the words “assumes,” “believes,” “estimates,”
“expects,” “guidance,” “intends,” “plans,” “projects,” and similar
expressions that do not relate to historical matters. All statements
other than statements of historical fact are forward-looking statements.
You should exercise caution in interpreting and relying on
forward-looking statements because they involve known and unknown risks,
uncertainties, and other factors which are, in some cases, beyond the
Company’s control and could materially affect actual results,
performance, or achievements. Important factors that may affect the
Company’s business, results of operations and financial position are
detailed from time to time in the Company’s filings with the Securities
and Exchange Commission. The Company does not undertake any obligation
to update or revise any forward-looking statement, whether as a result
of new information, future events, or otherwise, except as may be
required by applicable law.
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