The transaction improves Century’s financial flexibility and operational efficiency as it focuses on its core US assets
Century Casinos is selling the racing and gaming operations of Century Mile Racetrack and Casino in Edmonton, Alberta and Century Downs Racetrack and Casino in Calgary, Alberta, to Highfield Investment Group for $16.4m.
Century Casinos owns 100 per cent of Century Mile and a 75 per cent interest in Century Downs; noncontrolling partners own the remaining 25 per cent of Century Downs.
The real estate underlying Century Mile and Century Downs is owned by subsidiaries of VICI Properties and is leased to the operating companies under the company’s existing triple-net master lease agreement. In connection with the closing, subsidiaries of the company and VICI will amend the Master Lease to remove the Century Mile and Century Downs properties, and Highfield will become the new tenant of these properties and be responsible for the associated rent obligations going forward. With the removal of these two properties from Century’s Master Lease, the company’s annual rent will be reduced by approximately $7.5m.
The company intends to use the proceeds from the transaction to reduce its indebtedness. The transaction is expected to reduce the company’s lease-adjusted net leverage on a pro forma basis.
“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,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, remarked. “This transaction improves our financial flexibility and operational efficiency as we focus on our core US. assets,” they concluded.
The transaction is expected to close in the fourth quarter of 2026 or the first quarter of 2027, subject to customary regulatory approvals and closing conditions.