Vici Properties, a actual property funding trust, has made a strategic pass with the aid of using diversifying its portfolio into the bowling leisure sector.
In a latest sale-leaseback transaction, Vici obtained 38 bowling leisure centres from Bowlero Corp. for an combination buy fee of $432.9m.
This acquisition aligns with Vici Properties’ overarching funding strategy, wherein it seeks out property that demonstrate ‘decrease cyclicality, low secular threats, tested sturdiness and beneficial supply/call for dynamics’.
In this new partnership, Vici Properties entered right into a triple-internet grasp rent settlement with Bowlero as a part of the sale-leaseback transaction. This rent settlement is established with an preliminary overall annual lease of $31.6m, reflecting an acquisition cap price of 7.3%.
These acquisitions are a part of Vici Properties’ ongoing growth strategy, which has these days blanketed a foray into the Canadian market via partnerships with Century Casinos.
The acquisition blanketed houses inclusive of Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino in Edmonton, Alberta and Century Downs Racetrack and Casino in Calgary, Alberta.
The transaction’s rent phrases are set at a 15-yr preliminary base time period, with an alternative for 4 5-yr renewals, making sure long-time period capacity and monetary flexibility.
Furthermore, Vici Properties has proven monetary benefit and balance in latest years. In 2021, the organisation generated $1.5bn in overall revenue, showcasing a 23.2% yr-on-yr growth.