VICI Properties signs new 20-year lease for Alberta racetracks with Highfield
The deal follows Century Casinos's sale of the operations to Highfield for approximately $16.4 million.
CALGARY — VICI Properties Inc. has entered into a new 20-year triple-net lease with Highfield Investment Group for the real estate at the Century Mile and Century Downs racetracks and casinos in Alberta.
The lease will start at CAD$10.7 million (US$7.5 million) in annual base rent, with four five-year renewal options.
The rent will increase annually by the greater of 1.25% or the Canadian Consumer Price Index, capped at 2.50%.
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"At VICI, we always aim to support our tenants as they evaluate strategies to achieve their company’s long-term goals and objectives and are proud to collaborate with the Century Casinos team on this transaction that helps deleverage the Century balance sheet," said John Payne, VICI’s president and COO.
Payne expressed confidence in Highfield’s business plan for the racetracks, saying their "regional focus will help deliver strong results at Century Mile and Century Downs."
The deal follows Century Casinos's sale of the racing and gaming operations of the two properties to Highfield for an aggregate purchase price of approximately $16.4 million (CAD 23.2 million), representing a 6.1x multiple of fiscal 2025 EBITDA.
Century Casinos owns 100% of Century Mile and a 75% interest in Century Downs, with noncontrolling partners owning the remaining 25% of Century Downs.
The real estate underlying the properties is owned by VICI subsidiaries and was leased to Century under an existing triple-net master lease.
VICI will reduce rent under its existing Century Master Lease by the same CAD$10.7 million, keeping its total rent unchanged.
With the removal of the two properties from its master lease, Century Casinos's annual rent will be reduced by approximately $7.5 million.
The company intends to use the proceeds from the transaction to reduce its indebtedness and expects the sale to reduce its lease-adjusted net leverage on a pro forma basis.
"As part of our ongoing strategic review process, the sale of Century Mile and Century Downs racinos is an important step towards concentrating our resources on our U.S. properties, where we see the strongest opportunities for growth," said Erwin Haitzmann and Peter Hoetzinger, co-chief executive officers of Century Casinos.
"This transaction improves our financial flexibility and operational efficiency as we focus on our core U.S. assets," they concluded.
Adrian Munro, president of Calgary-based Highfield, said that he looked forward to "implementing a business plan to modernize the racetracks, while maintaining a positive culture for our team and our guests."
VICI has also agreed to a minimum capital-expenditure requirement equal to 1% of annual net revenue at each property.
The transactions are expected to close in the fourth quarter of 2026 or the first quarter of 2027, subject to customary regulatory approvals and closing conditions.
Macquarie Capital acted as exclusive financial advisor to Century Casinos, and Field Law acted as its legal counsel for the transaction.