Entertainment <\/p>\n
The owner and acquirer of real estate assets across leading gaming, hospitality, entertainment and leisure destinations, VICI Properties<\/strong>, may consider acquiring Caesars Forum<\/strong> on the Las Vegas Strip<\/a>, an analyst suggests.<\/p>\n That\u2019s the take of Carlo Santarelli<\/strong>, a Deutsche Bank<\/strong> analyst, who was recently quoted by CDC Gaming.<\/em> During a recent investor dinner with unnamed executives from VICI Properties, several important topics were discussed.<\/p>\n Notably, according to the analyst, the company aims to achieve an annual yield of 8% to 10% on its properties<\/strong>. The process may further benefit from deals, including \u201ctraditional real estate acquisitions, the partner growth fund, or credit extensions.\u201d<\/p>\n Focusing on one acquisition option, Santarelli pointed to the possibility of VICI acquiring Caesars Forum<\/strong> from its primary tenant, Caesars Entertainment<\/strong>. The aforementioned property offers 320,000 square feet of flexible meeting space consisting of two of the largest pillarless ballrooms that can accommodate up to 10,000 attendees.<\/p>\n The large-scale meeting and convention space leverages modern technology, innovative features and promises world-class service<\/strong>. Caesars Forum is operated by Caesars Entertainment. As Caesars is VICI\u2019s main tenant, the latter company possesses a call option for the massive conference center<\/strong>.<\/p>\n In case the company proceeds with the acquisition of Caesars Forum, it may pay 13x the annual rent <\/strong>in case the process is completed before 2028<\/strong>. It\u2019s important to note that the size of the annual rent isn\u2019t publicly available information.<\/p>\n In addition, VICI holds the first refusal rights for a number of casinos<\/strong>, including five properties on the Las Vegas Strip, as well as on a recently opened Caesars casino in Danville, Virginia, and Horseshoe Casino Baltimore.<\/p>\n VICI is also exploring other growth options, including the much-debated three new downstate casino licenses in New York<\/a>. This comes in the context of the company\u2019s ownership of the real estate of MGM Resorts-operated Empire City Casino and Yonkers Raceway<\/strong>.<\/p>\n Per Santarelli, VICI is \u201cpatiently awaiting the conclusion of the New York downstate casino license process.\u201d If the venue secures one out of the three casino licenses, allowing it to offer Class III gaming, MGM Resorts plans to invest $2 billion<\/strong>.<\/p>\n In that context, VICI may participate in the financing of the transaction<\/strong> required for the development of the Empire City Casino in exchange for interest<\/strong>. Still, this opportunity remains contingent on the awarding of the casino license by the New York Gaming Facility Location Board. Only recently, two new members were added to the board<\/a> in a move that may help expedite the process.<\/p>\n<\/p><\/div>\nVICI Aims at Annual Yield of 8-10% on Its Properties, Boosted by Potential Deals<\/h2>\n
The Company Keeps an Eye on NY Casino Licensing Process<\/h2>\n