NEW YORK–(BUSINESS WIRE)–Apr five, 2019–VICI Properties Inc. (NYSE: VICI) (“VICI Properties” or the “Company”), an experiential actual property investment trust (“REIT”), these days introduced that it has, collectively with a subsidiary of Hard Rock International (“Hard Rock”) entered into definitive agreements to gather the JACK Cincinnati Casino (“JACK Cincinnati”), located in downtown Cincinnati.
Ohio buys a fee of about $745 million in coins for a mixture. Under the agreements, VICI Properties will acquire 100% of the membership hobbies of a subsidiary of JACK Cincinnati that owns the land and actual estate property of JACK Cincinnati for $558 million, and Hard Rock will collect the working belongings of JACK Cincinnati for $187 million.
Simultaneous with the remaining of this transaction, the Company will input into a triple-net rent agreement with Hard Rock associated with JACK Cincinnati. The hire can have an initial annual employment of $42.75 million, an implied capitalization price of 7%, and a preliminary term of 15 years, with four to five years of renewal alternatives.
The lease insurance ratio in the first year after remaining is predicted to be about 1.74x. The tenant’s obligations under the lease can be assured using Seminole Hard Rock Entertainment, Inc., which keeps a funding grade score from S&P Global and Fitch Ratings. We are proud to accomplice with Hard Rock, further diversifying our tenant roster with a global leader in gaming, entertainment, and hospitality studies, and a renowned worldwide platform of 245 hospitality venues across 75 countries,” stated John Payne.
President and Chief Operating Officer of VICI Properties. “This transaction expands our geographic footprint into one of the quickest-growing nearby markets. As one of the best four full-scale casinos permitted in Ohio, the belongings are poised to enjoy the introduction of Hard Rock, a dynamic and proven operator within the Ohio market. We sit up for supporting Hard Rock as they hold to execute their increase strategy in the course of the U.S.
And globally. Opened in March 2013, JACK Cincinnati is situated on 22 acres in the Broadway Commons area of downtown Cincinnati. The property capabilities 100,000 rectangular feet of gaming area with about 1,800 gaming machines and one hundred table games. Additionally, the property includes 33,000 square feet of assembly area, six excellent restaurants, and bars.
Hard Rock has been the primary operator in Ohio when you considered that beginning within the more Cleveland marketplace in 2013,” said Jim Allen, chairman and CEO of Hard Rock International. “And now, we look ahead to introducing our specific brand of online casino leisure to Cincinnati. On behalf of the forty 000 Hard Rock crew participants globally.
I am thrilled to welcome more than 1,000 JACK Cincinnati employees into the Hard Rock family. The transaction is issued to regulatory approvals and commonplace ultimate conditions and is anticipated to close in late 2019. The acquisition is predicted to be accretive immediately upon last. Goldman Sachs & Co. LLC is an economic consultant, and Kramer Levin Naftalis & Frankel LLP is a legal consultant to VICI Properties for the transaction described herein.
About VICI Properties
VICI Properties is an experiential actual estate investment accepted as true that owns one of the largest portfolios of market-leading gaming, hospitality, and amusement locations, inclusive of the world-renowned Caesars Palace. VICI Properties’ country-wide, geographically numerous portfolio includes 22 gaming facilities comprising over 39 million rectangular toes, approximately 14,800 motel rooms, and more than 150 eating places, bars, and nightclubs. Its houses are leased to enterprise main gaming and hospitality operators, including Caesars Entertainment Corporation and Penn National Gaming.
VICI Properties additionally owns four championship golf courses and 34 acres of undeveloped land adjacent to the Las Vegas Strip. VICI Properties’ approach creates the country’s most exceptional and productive experiential real estate portfolio. For additional information, please visit www.Viciproperties.Com.