VICI Properties Inc. Completes Acquisition of Octavius Tower at Caesars Palace Las Vegas
12 Luglio 2018 - 1:00PM
Business Wire
- Enters into Definitive Agreement for Harrah’s
Philadelphia and Lease Modifications -
VICI Properties Inc. (NYSE:VICI) (together with its affiliates,
“VICI Properties” or the “Company”), an experiential real estate
investment trust (“REIT”), today announced it has completed the
acquisition for the previously announced transaction with Caesars
Entertainment Corporation (NASDAQ:CZR) (“Caesars Entertainment” or
“Caesars”) to acquire, and lease back, all of the land and real
estate assets associated with the Octavius Tower at Caesars Palace
for $507.5 million. The Company funded the purchase of Octavius
Tower using available cash. Caesars has operated, and will continue
to operate, Octavius Tower pursuant to the terms of an existing
ground lease until such time as the Caesars Palace Las Vegas lease
is amended to incorporate the Octavius Tower ground lease, which
will happen concurrently with the closing of Harrah’s Philadelphia
(as discussed herein). The annual rent payment to the Company for
the Octavius Tower will be $35 million.
The acquisition of Octavius Tower represents the consummation of
a portion of the transactions contemplated and detailed in the
previously announced Letter of Intent (“LOI”) entered into on May
8, 2018 by and between the Company and Caesars. On July 11, 2018,
VICI Properties and Caesars entered into a definitive agreement
with respect to the other transactions contemplated by the LOI,
including the acquisition of all of the land and real estate assets
associated with Harrah’s Philadelphia for $241.5 million, which
will be reduced by $159 million to reflect the aggregate net
present value of the contemplated modifications to certain of the
Company’s leases with Caesars, resulting in cash consideration of
$82.5 million. The acquisition of Harrah’s Philadelphia and the
entry into the contemplated modifications to the lease agreements
are expected to close during the fourth quarter of 2018.
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 20 gaming facilities
comprising over 37 million square feet and features approximately
15,000 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.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. You can identify these
statements by our use of the words “assumes,” “believes,”
“estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,”
and similar expressions that do not relate to historical matters.
All statements other than statements of historical fact are
forward-looking statements. You should exercise caution in
interpreting and relying on forward-looking statements because they
involve known and unknown risks, uncertainties, and other factors
which are, in some cases, beyond the Company’s control and could
materially affect actual results, performance, or achievements.
Among those risks, uncertainties and other factors are risks that
the acquisition of the Harrah’s Philadelphia property may not be
consummated on the terms or timeframe described herein, or at all;
the ability of the parties to satisfy the conditions set forth in
the definitive transaction documents, including the ability to
receive, or delays in obtaining, regulatory approvals and the
consents required to consummate the acquisition of the Harrah’s
Philadelphia property (including required lender and holder
consents); the risk that Caesars may exercise its call right to
reacquire the Octavius Tower property in the event that the
Harrah’s Philadelphia purchase agreement is terminated; the terms
on which the Company finances the acquisition of the Harrah’s
Philadelphia property, including the source of funds used to
finance such transaction; disruptions to the real property and
operations of the acquisition of the Harrah’s Philadelphia property
during the pendency of the closing; risks that the Company may not
achieve the benefits contemplated by the acquisitions of the real
estate assets (including any expected accretion or the amount of
any future rent payments); and risks that not all potential risks
and liabilities have been identified in the Company’s due
diligence. Although the Company believes that in making such
forward-looking statements its expectations are based upon
reasonable assumptions, such statements may be influenced by
factors that could cause actual outcomes and results to be
materially different from those projected. The Company cannot
assure you that the assumptions upon which these statements are
based will prove to have been correct. Additional important factors
that may affect the Company’s business, results of operations and
financial position are described from time to time in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2017,
Quarterly Reports on Form 10-Q and the Company’s other filings with
the Securities and Exchange Commission. The Company does not
undertake any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events,
or otherwise, except as may be required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20180712005330/en/
Investors:VICI
Properties725-201-6415Investors@viciproperties.comorICRJacques
CornetJacques.Cornet@icrinc.comorMedia:VICI
Properties725-201-6414PR@viciproperties.comorICRPhil Denning,
646-277-1258Phil.Denning@icrinc.comorJason Chudoba,
646-277-1249Jason.Chudoba@icrinc.com
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