Harrah's Philadelphia, Chester, Pa

CHESTER, PA—VICI Properties, an experiential real estate investment trust, has completed previously disclosed transactions with Caesars Entertainment Corporation to acquire, and lease back, all of the land and real estate assets associated with Harrah's Philadelphia. The company also modified leases with Caesar's in connection with the transaction

Harrah's Philadelphia was acquired for a purchase price of $241.5 million, which was reduced by $159.0 million to reflect the aggregate net present value of the lease modifications, resulting in a net cash consideration of $82.5 million, excluding transaction costs. The company funded the net purchase price using available cash. The Harrah's Philadelphia property provides for initial annual rent of $21 million.

“The VICI and Caesars teams worked very productively together to complete this important and value-creating transaction for both companies,” says Edward Pitoniak, chief executive officer of VICI Properties. “Adding Harrah's Philadelphia to our growing portfolio of best in-class gaming real estate strengthens our presence in the attractive Mid-Atlantic gaming market. In addition, guided by a deep understanding of the needs and goals of our tenants, we amended the original lease agreements to be better aligned with the strategic interests of both parties. For VICI shareholders, these changes significantly improve our same-store rent growth in the near-term, protect against future volatility in our rental income over the long-term and, most importantly, incentivize our tenant to invest capital into the real estate to grow and strengthen their own business.”