Real estate investment trust Vici Properties has expanded its portfolio by investing in bowling centers. The company acquired 38 bowling entertainment centers from Bowlero Corp for $432.9 million. This is in line with Vici Properties' strategy of seeking assets with low risk, longevity, and stable demand.
The fund has also entered into a lease agreement with Bowlero where the initial annual rent will be $31.6 million, equivalent to a 7.3% annualized rate. This is done as part of their expansion strategy which includes partnering with Century Casinos and acquiring properties in Canada.
The deal includes several properties including casinos, racetracks, and hotels, and the lease terms are designed to be long-term, with an option to extend the contract for 5 years beyond the initial 15 years. The company has also shown steady financial growth, with revenues of $1.5 billion in 2021, representing a 23.2% compound annual growth rate.
