VICI Properties Inc. has announced it has inked an agreement with an affiliate of Indigenous Gaming Partners Inc. (IGP) where VICI will assign the master lease agreement it has with PURE Canadian Gaming Corp. to IGP.
IGP already announced the acquisition of the PURE operating assets in Alberta: PURE Casino Edmonton, PURE Casino Yellowhead, PURE Casino Calgary, and PURE Casino Lethbridge. VICI, a real estate investment trust, had acquired the real estate assets of PURE in January 2023 for an aggregate purchase price of approximately CA$271.9 million (US$200.8 million). It was VICI’s first international investment.
Key to that deal was VICI entering into a triple-net master-lease agreement with PURE covering the PURE portfolio, with an annual rent of approximately CA$21.8 million ($16.1 million) and an initial term of 25 years with four 5-year tenant-renewal options.
According to a statement, the terms of the PURE Canadian master lease will remain unchanged, “including a base term of 25 years with four 5-year tenant renewal options, escalation of 1.25% per annum in lease year 3, with escalation equal to the greater of 1.5% and Canadian CPI (capped at 2.5%) starting in lease year 4, and a minimum capital expenditure requirement equal to 1.0% of annual net revenue.”
The lease is currently in year 2 and escalating on February 1 of each year.
The PURE portfolio totals 247,450 square feet, 89 table games, 56 poker tables, 2,864 slots, and 104 VLTs (video lottery terminals).
IGP is a partnership of five institutional First Nations (Glooscap First Nation, Millbrook First Nation, Annapolis Valley First Nation, We’koqma’q L’nue’kati, and Paqtnkek Mi’kmaw Nation) set up to acquire gaming assets in North America. For this endeavor, they’ve partnered with Sonco Gaming Inc., the Halifax-based real estate, gaming-development, and management company.
“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,” said Danny Valoy, Vice President of Business Development and Acquisitions, for VICI.
VICI Properties Inc. owns one of the largest portfolios of gaming, hospitality and entertainment destinations, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas.
“We believe having a partner like VICI will give us a competitive advantage as we seek growth opportunities in the Canadian market,” said Anthony Novac, CEO of Sonco.
