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Pure casino portfolio in Alberta bought for $271.9 million

Sale-leaseback deal sees U.S.-based Vici Properties REIT acquire all of Pure’s Alberta real estate assets
The 72,000-square-foot Pure Casino Edmonton is among the Pure portfolio sold and leased back.| Pure Canadian Gaming Corp.

Pure Canadian Gaming Corp. has sold its four Pure Casinos in Alberta to New York City-based real estate investment trust Vici Properties for $271.9 million (US$200.8 million) in a long-term sale-leaseback arrangement.

The deal includes the real estate assets of Pure Casino Edmonton in Edmonton, Pure Casino Yellowhead. Edmonton, Pure Casino Calgary, Calgary and Pure Casino Lethbridge in Lethbridge, Alberta.

The transaction, the first in Canada for Vici Properties, was announced January 9, 2023.

Simultaneous with the acquisition, VICI entered into a triple-net master lease agreement with Pure Canadian Gaming covering the Pure portfolio. The Pure Master Lease has an initial total annual rent of approximately C$21.8 million representing an implied acquisition capitalization rate of 8.0 per cent, and an initial term of 25 years, with four five-year tenant renewal options.

“Today’s announcement marks another momentous first for VICI as we expand our footprint internationally into Canada with the acquisition of the Pure portfolio,” said John Payne, president and CEO of VICI Properties, in a statement.

Pure is the largest gaming operator in Alberta, which VICI identifies as a “highly regulated market with minimal competitive threats and no significant changes to the business model over the last 30-plus years.”

VICI Properties Inc. is an S&P 500 experiential real estate investment trust that owns one of the largest portfolios of gaming, hospitality and entertainment destinations in North America. Properties include Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas, all on the Las Vegas Strip.