Century Casinos has signed a definitive agreement to sell the racing and gaming operations of two properties in Alberta, Canada, to Highfield Investment Group.
The deal covers Century Mile Racetrack and Casino in Edmonton and Century Downs Racetrack and Casino in Calgary, with an aggregate purchase price of approximately $16.4 million. The price represents a 6.1x multiple of FY 2025 EBITDA.
Century Casinos owns 100% of Century Mile and holds a 75% interest in Century Downs. Noncontrolling partners own the remaining 25% of the Calgary property.
A new tenant for VICI’s Alberta sites
Subsidiaries of VICI Properties Inc. own the real estate at both racinos, and the operating companies lease the sites under Century’s existing triple-net master lease agreement.
At closing, subsidiaries of Century Casinos and VICI will amend the Master Lease to remove Century Mile and Century Downs. Highfield will then become the tenant of both properties and will take on the associated rent obligations going forward.
The removal of the two properties from the Master Lease will reduce Century’s annual rent by approximately $7.5 million.
Century Casinos intends to use the proceeds to reduce its indebtedness. The company also expects the transaction to lower its lease-adjusted net leverage on a pro forma basis.
Turning the focus south of the border
The divestiture forms part of Century’s ongoing strategic review, according to Co-Chief Executive Officers Erwin Haitzmann and Peter Hoetzinger.
“As part of our ongoing strategic review process, the sale of Century Mile and Century Downs racinos is an important step towards concentrating our resources on our U.S. properties, where we see the strongest opportunities for growth,” said Co-Chief Executive Officers Erwin Haitzmann and Peter Hoetzinger.
“This transaction improves our financial flexibility and operational efficiency as we focus on our core U.S. assets,” they concluded.
The company expects the transaction to close in the fourth quarter of 2026 or the first quarter of 2027, subject to customary regulatory approvals and closing conditions.