VICI Properties and Foundation Gaming & Entertainment "announced jointly that VICI has acquired the real estate assets of the Fitz Casino & Hotel, located in Tunica, Mississippi, and the WaterView Casino & Hotel, located in Vicksburg, Mississippi, from Foundation Gaming for an aggregate purchase price of $293.4M. VICI financed the transaction with cash on hand. Simultaneous with the acquisition, VICI entered into a triple-net master lease agreement with subsidiaries of Foundation Gaming related to the assets. The Foundation Master Lease has an initial total annual rent of $24.25M, representing an implied acquisition capitalization rate of 8.3%, and an initial term of 15 years, with four 5-year tenant renewal options. The rent coverage ratio in the first year after closing is expected to be approximately 2.0x and the tenants’ obligations under the lease are guaranteed by the parent entity, Foundation Gaming."
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