VICI Properties, a proprietor and acquirer of experiential actual property belongings throughout leading gaming, hospitality, leisure, and amusement destinations, has bought the Fitz Casino & Hotel and the WaterView Casino & Hotel houses from Foundation Gaming & Entertainment.
VICI Acquires Two Casinos in a Sale-Leaseback Deal
The real estate specialist paid $293.4 million in cash for the acquisition in the sale-leaseback agreement. As agreed, Foundation Gaming will sublet the two venues after the sale. As outlined in the agreement, VICI entered into a tripartite network master lease agreement under which Foundation Gaming will sub-lease the properties. Under the terms of the Foundation’s master lease, the casino property will pay $24.
Twenty-five million per year to keep the two casinos running. In particular, this corresponds to an implicit capitalization interest rate of 8.3% with an initial term of 15 years. Four additional 5-year terms can extend the contract. Fitz Casino & Hotel and WaterView Casino & Hotel are two Mississippi gaming and hospitality properties in Tunica and Vicksburg, respectively.
Both are operated by Foundation Gaming & Entertainment and staffed by dedicated and experienced teams of industry specialists. Foundation Gaming acquired WaterView Casino, initially founded in 1993 and 2015. The company bought Fitz Casino three years later, founded in 1994. If you look at what the properties offer, WaterView has a 37,000-square-foot casino area where visitors can sit at one of the ten gaming tables or play one of the 650 slot machines. The casino offers customers three food and drink options to stay in one of their hotel rooms.
On the other hand, the Fitz Casino offers sports betting, nine table games, and 864 slot machines. It also has six restaurants that offer its guests a varied gastronomic offer.
The Two Foundation Gaming Casinos Will Expand VICI’s Portfolio
Thanks to the agreement with Foundation Gaming & Entertainment, VICI Properties now has another great ally and tenant that will further strengthen its portfolio. For reference, the real estate company has similar deals with top industry leaders, including Caesars, MGM Resorts, Century Casinos, and others. VICI Properties is the largest real estate owner on the Las Vegas Strip. It owns many significant casinos there, including almost all of the MGM Resorts locations. The company also owns the famous Caesars Palace and the popular Venetian.
Now that VICI has asserted its dominance in Las Vegas, it is also considering further expansion into Mississippi and has already signed significant deals.
About VICI properties:
VICI Properties Inc. is an S&P 500® experimental real estate investment fund that owns one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, including Caesars Palace Las Vegas, MGM Grand, and Venetian Resort Las Vegas, three of the best-known Entertainment venues on the Las Vegas Strip. VICI Properties’ nationally and geographically diverse portfolio consists of 43 gaming properties covering more than 122 million square feet, approximately 58,700 hotel rooms, and more than 450 restaurants, bars, nightclubs, and sportsbooks. Its properties are leased to industry-leading gaming and hospitality operators, including CaesarsEntertainment, Inc., Century Casinos, Inc., Eastern Band of Cherokee Indians, Hard Rock International Inc., JACK Entertainment LLC, MGM Resorts International, Penn Entertainment, Inc., and The Venetian Las Vegas. Investment and funding partnerships with leading non-gaming experience providers, including Great Wolf Resorts, Cabot, Canyon Ranch, and Chelsea Piers.
VICI Properties also owns four championship golf courses and 34 acres of vacant and undeveloped land adjacent to the Las Vegas Strip.