Century Casinos has finalized an agreement to transfer the racing and gaming operations of two of its properties in Alberta, Canada, to Highfield Investment Group.
The transaction involves the Century Mile Racetrack and Casino located in Edmonton, as well as the Century Downs Racetrack and Casino in Calgary, with a total sale price of around $16.4 million. This valuation reflects a multiple of 6.1 times the expected EBITDA for the fiscal year 2025.
Century Casinos owns the entirety of Century Mile and holds a 75% stake in Century Downs, with the remaining 25% owned by non-controlling partners.
The real estate for both racinos is owned by subsidiaries of VICI Properties Inc., while the operating companies lease the properties under Century's current triple-net master lease agreement.
Upon closing, both Century Casinos and VICI will modify the Master Lease to exclude Century Mile and Century Downs. Highfield will then take over as the tenant of these properties, assuming the related rental responsibilities.
This adjustment to the Master Lease is expected to decrease Century's annual rent by approximately $7.5 million.
Century Casinos plans to use the proceeds from this sale to pay down its debt. The company also anticipates that this deal will improve its lease-adjusted net leverage on a pro forma basis.
According to Co-Chief Executive Officers Erwin Haitzmann and Peter Hoetzinger, this divestiture is part of Century's ongoing strategic assessment. They stated, “The sale of Century Mile and Century Downs is a significant move in our strategy to focus our resources on our U.S. properties, where we identify the most promising growth opportunities.”
They added, “This transaction enhances our financial flexibility and operational efficiency as we concentrate on our primary U.S. assets.”
The company expects the deal to finalize in either the fourth quarter of 2026 or the first quarter of 2027, pending standard regulatory approvals and closing conditions.