VICI Properties Inc., the real estate investment trust spinoff, controlled by Caesars Entertainment, has completed its previously announced $507.5 million acquisition of all the land and real estate assets associated with the Octavius Tower at Caesars Palace Las Vegas.
VICI funded the purchase with available cash.
Caesars will continue to operate Octavius Tower in exchange for an annual rent payment of $35 million, VICI says. The proceeds from the transaction will support the forthcoming closing of Caesars’ acquisition of the two Centaur Holdings casino/racetracks in Indiana.
On July 11, VICI announced the acquisition of Caesars’ real estate assets associated with Harrah’s Philadelphia, a casino/racetrack complex, for $241.5 million, which will be reduced to $82.5 million to reflect the aggregate net present value of the contemplated modifications to certain of the Company’s leases with Caesars. This transaction is still subject to customary closing conditions and government and third party approvals.
Mark Frissora, president and chief executive officer of Caesars, said these agreements with VICI unlock more than $500 million in value from Caesars’ real estate assets to support value-adding growth opportunities and reduce the volatility of its future rent payments, demonstrating the commitment to create value for its shareholders while maintaining financial discipline.”