VICI Clears Final Approvals for Golden Entertainment Property Acquisition
LAS VEGAS – VICI Properties has secured the approvals needed to proceed with its $1.16 billion acquisition of seven Golden Entertainment casino real estate assets in Nevada.
LISTEN TO THIS ARTICLE:The deal is expected to close on or around April 30, shifting ownership of key properties while Golden’s operations move into a new private structure led by Blake L. Sartini.
The transaction covers 100% of the land, real property and associated improvements tied to seven Golden Entertainment casino properties. Once completed, VICI will enter into a triple-net master lease with a newly formed entity owned and controlled by Sartini, Golden’s chairman and chief executive, which will acquire the operating business and continue running the venues.
Golden shareholders approved the transaction on March 31. Under the agreement, they will receive approximately 24.3 million newly issued VICI shares, with an exchange ratio of 0.902 VICI shares for each Golden share, alongside a cash component to be paid by an affiliate of Golden’s operating company.
Related: VICI Properties Not Interested in Buying Caesars Indiana Properties
Nevada Portfolio Moves into REIT Structure
The seven-property package includes The STRAT Hotel, Casino & Tower on the North Las Vegas Strip, one of Golden’s most visible assets. The STRAT has been part of Golden’s portfolio since 2017 and later underwent a $140 million renovation.
The deal also expands VICI’s already significant exposure to Nevada gaming real estate. The real estate investment trust owns several major Strip-linked casino assets, including Caesars Palace, The Venetian and Palazzo, and MGM Grand.
As part of the transaction, VICI will assume and immediately retire Golden Entertainment’s outstanding $426 million debt. The company plans to use cash on hand and proceeds from the settlement of forward sale agreements to complete that balance sheet step.
The master lease will begin with $87 million in annual rent and an initial term of 30 years. It also includes four five-year tenant renewal options, with rent set to rise by 2% annually beginning in the third year.
More Business
Sartini to Lead Private Operating Business
Golden Entertainment will retain a smaller real estate footprint after the transaction, including Gold Town Casino in Pahrump and its network of 72 gaming taverns across Nevada. The sale-leaseback deal forms part of a wider restructuring, with Sartini also pursuing a separate process to take Golden private at $30 per share.
Sartini said the transaction “maximizes value” for shareholders by providing a premium to Golden’s share price and pairing its Nevada real estate with VICI’s experiential property platform. He also said the company would continue serving customers across its Las Vegas Strip, regional resort, local casino and tavern operations as it enters its next phase as a privately held business.
The transaction follows VICI’s recent move in Canada, where it announced a CAD$200.6 million acquisition of casino and hotel real estate assets in Alberta tied to Pure Casino Entertainment Partnership’s pending take-private acquisition of Gamehost.
For Golden, the expected April 30 closing would mark a major step in its move away from public-market ownership. For VICI, it adds another Nevada gaming portfolio to a real estate platform already deeply tied to the casino sector.
RELATED TOPICS: Business
Latest News
Responsible Gambling
Review this New Post
Leave a Comment
User Comments
Comments for VICI Clears Final Approvals for Golden Entertainment Property Acquisition