NEW YORK–(BUSINESS WIRE)–VICI Properties Inc. (NYSE:VICI), an experiential real estate investment trust, today announced it has completed the previously disclosed transaction to acquire the land and real estate assets of the Margaritaville Resort Casino, located in Bossier City, Louisiana, for approximately $261 million in cash, with Penn National Gaming, Inc. (NASDAQ:PENN) acquiring the operating assets of the Margaritaville Resort Casino for approximately $115 million in cash. The aggregate purchase price paid in connection with the acquisition of the real property and operations of the Margaritaville Resort Casino was approximately $376 million.
Simultaneous with the closing of this transaction, Penn National entered into a triple-net lease agreement with the Company. The lease has an initial total annual rent of approximately $23.2 million and an initial term of 15 years, with four 5-year renewal options. The Tenant’s obligations under the lease are guaranteed by Penn National. The Company funded the net purchase price using available cash from its 2018 equity raising activities.
John Payne, President and Chief Operating Officer of VICI Properties said, “Closing the Margaritaville acquisition in partnership with Penn National is a meaningful achievement coming within 15 months of the Company’s formation. The transaction is our first step towards fulfilling our objective to diversify our tenant roster with best-in-class gaming operators. Having known and worked with senior leaders at Penn National, I look forward to VICI Properties building a long-term mutually productive partnership with this world class operator.”
Mr. Payne continued, “In addition to tenant diversity, this transaction also enhances our presence in the Bossier/Shreveport market with the acquisition of the newest facility in the market. Since opening in 2013, the Margaritaville Resort Casino has consistently been one of the leaders in the region. We look forward to working in partnership with Penn National to continue providing a high-quality experience for customers, employees and the community at large.”
David Kieske, Chief Financial Officer of VICI Properties also commented, “With the closing of the Margaritaville transaction, we have deployed all of the net proceeds raised in our initial public offering last year at an aggregate cap rate of 9.3%. As we begin 2019, we still have all of the net proceeds from our recent and opportunistic $700 million equity raise and will use that cash to fund our already-announced Greektown acquisition and future growth opportunities. Indeed, no other American REIT raised as much primary equity in 2018 as VICI did, with our two equity raises totaling $2.1 billion of gross proceeds, or approximately 21% of the $10 billion of REIT primary equity raised in the year. When combined with the $1.0 billion of equity raised in our December 2017 private placement, we have raised over $3 billion of primary equity in less than 13 months. We are very gratified for the faith that institutional investors have placed in VICI and we believe that the growth of our institutional shareholder base is key to the institutionalization of our sector. Moving forward, we will continue to carry out a strategy whereby we will finance growth with prudent leverage, while maintaining sufficient liquidity for long-term growth.”
Margaritaville Resort Casino
Built in 2013, Margaritaville Resort Casino is the premier venue for gaming, lodging, dining and entertainment experiences in Northern Louisiana. The property comprises approximately 4 acres of fee land and nearly 30 acres of leased land. The hotel and casino built on the fee land contain approximately 26,500 square feet of casino space featuring 1,215 slots and 50 tables, 395 hotel rooms, an island-style escape theme, 6 restaurants and food and beverage outlets and a 15,000 square foot 1,000-seat theater. Approximately 1,500 parking spaces are located on the leased land.
About VICI Properties
VICI Properties is an experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including the world-renowned Caesars Palace. VICI Properties’ national, geographically diverse portfolio consists of 22 gaming facilities comprising over 39 million square feet and features approximately 14,800 hotel rooms and more than 150 restaurants, bars and nightclubs. Its properties are leased to leading brands such as Caesars, Horseshoe, Harrah’s and Bally’s, which prioritize customer loyalty and value through great service, superior products and constant innovation. VICI Properties also owns four championship golf courses and 34 acres of undeveloped land adjacent to the Las Vegas Strip. VICI Properties’ strategy is to create the nation’s highest quality and most productive experiential real estate portfolio. For additional information, please visit www.viciproperties.com.
