US real estate investment trust VICI Properties has acquired regional gaming properties from Foundation Gaming & Entertainment in a $293.4m (€282m) sale and leaseback deal.
VICI has bought the Fitz Casino & Hotel in Tunica, Mississippi, and the WaterView Casino & Hotel in Vicksburg, Mississippi.
As part of the deal, subsidiaries of Foundation Gaming have agreed a triple-net master lease agreement for assets. The Foundation master lease has an initial total annual rent of $24.25m.
The deal further diversifies VICI’s tenant roster through the long-term partnership with Foundation Gaming.
The Fitz Casino & Hotel was opened in 1994 and acquired by Foundation Gaming in 2018. The property features approximately 38,500sqft of gaming space, 864 slot machines, 9 table games, six food and beverage outlets, and is connected to a 506 key-hotel.
The WaterView Casino & Hotel was opened in 1993 and acquired by Foundation Gaming in 2015. The property is situated along the banks of the Mississippi River and contains 37,000sqft of gaming space, 650 slot machines, 10 table games, three food and beverage outlets and is connected to a 122-key hotel.
NYSE-listed VICI already owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas, three of the most iconic entertainment facilities on the Las Vegas Strip.
Danny Valoy, VP of acquisitions and finance of VICI Properties, said: “We are excited to partner with the experienced team at Foundation Gaming given their track record of value creation in regional gaming markets. Mississippi continues to be one of the largest regional gaming markets, and we are thrilled to be expanding our portfolio into the Vicksburg market at an attractive capitalisation rate.
“This transaction highlights VICI’s ability to execute accretive deals and close in an expeditious manner to meet our partners’ objectives while creating value for our shareholders.”
Allan Solomon, chairman of Foundation Gaming, said: “The extraordinary efforts of our property teams have given us the opportunity to partner with VICI on our two Mississippi properties. And by doing so, we have positioned our company for continued growth in the regional gaming space.
“We look forward to partnering with VICI in the future and we would also like to thank the team at Credit Suisse who provided invaluable assistance with this transaction.”
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