VICI Properties has entered into a new 20-year triple-net lease with Highfield Investment Group for the real estate at Century Mile & Downs racetracks in Alberta, Canada.
The lease will start at CAD$10.7 million (US$7.5 million) in annual base rent, with four five-year renewal options. The rent will increase by the greater of 1.25% or Canadian Consumer Price Index (CPI), capped at 2.50%.
The deal follows Century Casinos’s sale of the racetrack operations to Highfield. VICI will reduce rent under its existing Century Master Lease by the same CAD$10.7 million, keeping its total rent unchanged.
“At VICI, we always aim to support our tenants as they evaluate strategies to achieve their company’s long-term goals and objectives and are proud to collaborate with the Century Casinos team on this transaction that helps deleverage the Century balance sheet,” John Payne, VICI’s president and COO, said in a statement.
Payne expressed confidence in Highfield’s business plan for the racetracks, saying their “regional focus will help deliver strong results at Century Mile and Century Downs.”
Adrian Munro, president of Calgary-based Highfield, said that he looked forward to “implementing a business plan to modernize the racetracks, while maintaining a positive culture for our team and our guests.”
VICI has also agreed to a minimum capital-expenditure requirement equal to 1% of annual net revenue at each property.
The transactions are expected to close in the fourth quarter or the first quarter of 2027, subject to customary conditions and regulatory approvals.
