VICI Properties has made the C$200.6 million ($144 million) pending acquisition of the real estate assets of Deerfoot Inn & Casino, Great Northern Casino and two limited-service hotels adjacent to the Great Northern Casino, located in Alberta, Canada, in connection with Pure Casino Entertainment Limited Partnership’s pending take-private acquisition of Gamehost Inc.
Simultaneous with the closing of the Real Estate Transaction, the portfolio will be added to the existing triple-net master lease agreement between VICI Properties and PURE, and annual rent will increase by C$16.1 million ($12 million), representing an acquisition capitalization rate of 8 percent. The portfolio rent will escalate at 1 percent on Feb. 1 following a full 12 months post-closing, in line with the timing of the PURE master lease escalation, and escalation will conform to the PURE master lease thereafter at the greater of 1.5 percent or the change in Canadian CPI, capped at 2.5 percent.
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