Vici Properties diversifies into bowling entertainment sector
The acquisition is part of Vici Properties' ongoing expansion strategy. The company recently entered the Canadian market through partnerships with Century Casinos and generated over a billion dollars in total revenue in 2021, showcasing year-over-year growth.
Vici Properties, a real estate investment trust, has made a strategic move by diversifying its portfolio into the bowling entertainment sector.
In a recent sale-leaseback transaction, Vici acquired 38 bowling entertainment centres from Bowlero Corp. for an aggregate purchase price of $432.9m.
This acquisition aligns with Vici Properties’ overarching investment strategy, where it seeks out assets that demonstrate ‘lower cyclicality, low secular threats, proven durability and favourable supply/demand dynamics’.
In this new partnership, Vici Properties entered into a triple-net master lease agreement with Bowlero as part of the sale-leaseback transaction. This lease agreement is structured with an initial total annual rent of $31.6m, reflecting an acquisition cap rate of 7.3%.
These acquisitions are part of Vici Properties’ ongoing expansion strategy, which has recently included a foray into the Canadian market through partnerships with Century Casinos.
The acquisition included properties such as Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino in Edmonton, Alberta and Century Downs Racetrack and Casino in Calgary, Alberta.
The transaction’s lease terms are set at a 15-year initial base term, with an option for four 5-year renewals, ensuring long-term potential and financial flexibility.
Furthermore, Vici Properties has shown financial gain and stability in recent years. In 2021, the company generated $1.5bn in total revenue, showcasing a 23.2% year-on-year growth.
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