Casino real estate investment trust Vici Properties has agreed to a deal to acquire Maryland’s Rocky Gap Casino Resort from Golden Entertainment, while Century Casinos will acquire the venue’s operations.
The deal is valued at $260 million (£219.9 million / €260.1 million), with Vici paying $203.9 million to acquire ownership of the land and buildings associated with Rocky Gap and Century acquires the property’s AUM for approximately $56.1. m.
Upon completion of the deal, Rocky Gap will add to the existing triple-net master lease agreement between Vici and Century with an annual rent increase of $15.5 million.
Additionally, the term of the Century Master Lease will be extended so that, once the transaction is completed, the lease will have a full 15-year initial base term, with four five-year renewal options.
Located in Flintstone, Maryland, Rocky Gap features over 25,000 square feet of gaming floor, 630 slot machines, 16 table games, 198 hotel rooms, five dining options and an 18-hole golf course. It’s a full service resort. , a 5,000-square-foot event center, meeting space, and spa.
The property recently invested $10 million in improvements to its hotel, slot machines, restaurants and sports lounge, and may expand its casino and hotel.
The transaction is expected to close in mid-2023, subject to regulatory approvals and closing conditions.
“We are very pleased to expand our existing partnership with Century. We will also be working with our entertainment teams to help them achieve their strategic goals,” said John Payne, president and chief operating officer of Vici.
“This transaction will enable each company to efficiently create value for their respective shareholders.”
Upon completion of the acquisition of Nugget Sparks, which operates the Nugget Casino Resort in Nevada, and pending acquisitions, Century’s North American portfolio will increase to 11 casinos.
Century co-CEOs Erwin Heitzman and Peter Hetzinger said: “With this acquisition and the pending acquisition of the Nugget Casino Resort in Nevada, we will oversee our US portfolio spanning the East and West.
“We look forward to working with the Maryland Department of Lottery and Gaming Administration to obtain game approval and working with the casino leadership and team members to ensure a smooth transition and a great future for Rocky Gap.” .”
