Experiential real estate investment trust (REIT) VICI Properties, which owns portfolios of gaming, hospitality and entertainment destinations, plans to use capital from its Partner Property Growth Fund to finance an expansion project for Century Casinos in Caruthersville, Missouri.

In an amendment to the existing master lease between the two entities, Vici will own the real estate improvements, which are expected to cost approximately $51.9mn and include a 38-room hotel tower.

Annual rent under the master lease with Century will increase by approximately $4.2 million once the project is complete.

John Payne, president and chief operating officer of VICI Properties, focused on the continuous growth of the partnership with Century Casinos. “Since we jointly acquired three regional assets in 2019, the Century team has significantly enhanced performance at the properties by fine-tuning operations and focusing intently on customer satisfaction,” he said.

Payne noted that the transaction is structured to enhance the long-term value of the property, give Century flexibility around its balance sheet, and VICI an opportunity to “grow its AFFO without the need for external funding.”

The Missouri Gaming Commission granted preliminary approval for the projects in December 2021, but additional state and local approvals will be required, with a final regulatory approval from the Commission once the project is finished.

VICI announced plans in November to raise $509.9mn in new capital by offering 16.5mn of its common shares to underwriters. Century Casinos reported a 74% drop in net earnings attributable to shareholders in the third quarter of 2022.

Pictured: Caesars Palace, Las Vegas, NV.