VICI Properties Inc. Announces Partnership With Canyon Ranch With Investment in Canyon Ranch Austin in Austin, Texas
October 18 2022 - 4:15PM
Business Wire
VICI Properties Inc. (NYSE: VICI) (“VICI,” “VICI Properties” or
the “Company”), an experiential real estate investment trust,
announced today that it has entered into a delayed draw term loan
facility for up to $200 million (the “Loan Facility”) to fund the
development of Canyon Ranch’s newest wellness-resort offering,
Canyon Ranch Austin in Austin, Texas. Canyon Ranch is a pioneer in
the place-based wellness space with the mission to inspire a well
way of life through integrative wellness guidance from world-class
experts across a broad range of disciplines. The transaction
enhances VICI’s embedded growth pipeline with a call right to
acquire the real estate of Canyon Ranch Austin upon stabilization
and a purchase option for the real estate of Canyon Ranch Tucson in
Tucson, Arizona and Canyon Ranch Lenox in Lenox, Massachusetts
should Canyon Ranch elect to sell the real estate of either
property. If the call right or purchase options are exercised,
Canyon Ranch would continue to operate the wellness resorts subject
to a long-term triple net lease with VICI. Canyon Ranch Austin is
expected to begin welcoming guests as the fourth all-inclusive
wellness resort in the Canyon Ranch portfolio in 2025.
Key Comments
- Entry into ‘Place-Based Wellness Sector’—Edward
Pitoniak, VICI Chief Executive Officer: “Global place-based
wellness, a multi-trillion-dollar sector today, stands to be one of
the fastest-growing consumer spaces for years to come, thanks to
the strong cultural and demographic factors around wellness. Our
investment in Canyon Ranch Austin enables VICI to enter the
place-based wellness sector with the foremost brand in global
wellness, Canyon Ranch. We’re excited and proud to put VICI’s
capital behind the growth visions of John Goff, Jeff Kuster and the
Canyon Ranch team.”
- Expansion of Canyon Ranch—Jeff Kuster, Canyon Ranch
Chief Executive Officer: “We are honored to be working in
partnership with VICI to participate in the growth and development
of innovative, experiential destinations by bringing our newest
wellness resort to the Texas Hill Country only a short drive from
Austin. The Austin resort will join our well-established properties
in Tucson, AZ, Lenox, MA and Woodside, CA where we inspire and
guide people as they pursue their wellness goals. A truly
life-enhancing experience, our guests interact with their personal
team of world-class experts across a broad range of integrated
disciplines to discover the insights, skills, and motivation needed
to achieve their wellness intention. This could be discovering what
optimal health looks like, learning how to live their health
weight, focusing on how to improve mental and physical performance,
or simply taking the time to relax and renew.”
- Investment in the Dynamic Austin, Texas Real Estate
Market—David Kieske, VICI Executive Vice President & Chief
Financial Officer: “We are thrilled to partner with and support the
Canyon Ranch team as they bring their immersive and integrative
health experience to Austin, Texas. Austin’s population, economic
and cultural growth make it one of the most dynamic commercial real
estate markets in America, one VICI is excited to invest in.”
Morgan Stanley & Co LLC is acting as financial advisor to
VICI Properties on the transaction.
About VICI Properties
VICI Properties Inc. is an S&P 500® experiential real estate
investment trust that owns one of the largest portfolios of
market-leading gaming, hospitality and entertainment destinations,
including Caesars Palace Las Vegas, MGM Grand and the Venetian
Resort Las Vegas, three of the most iconic entertainment facilities
on the Las Vegas Strip. VICI Properties’ national, geographically
diverse portfolio consists of 43 gaming facilities comprising over
122 million square feet and features approximately 58,700 hotel
rooms and more than 450 restaurants, bars, nightclubs and
sportsbooks. Its properties are leased to industry leading gaming
and hospitality operators, including Caesars Entertainment, Inc.,
Century Casinos, Inc., the Eastern Band of Cherokee Indians, Hard
Rock International Inc., JACK Entertainment LLC, MGM Resorts
International, Penn Entertainment, Inc., and The Venetian Las
Vegas. The Company has a growing array of investing and financing
partnerships with leading non-gaming experiential operators,
including Great Wolf Resorts, Cabot, Canyon Ranch and Chelsea
Piers. VICI Properties also owns four championship golf courses and
34 acres of undeveloped and underdeveloped land adjacent to the Las
Vegas Strip. VICI Properties’ strategy is to create the nation’s
highest quality and most productive experiential real estate
portfolio. For additional information, please visit
www.viciproperties.com.
About Canyon Ranch
Canyon Ranch is a pioneer in wellness guidance with over four
decades of experience inspiring guests to pursue a lifetime of
wellbeing. A visit to a Canyon Ranch Resort is completely unique
for each guest and can be different every time they come by
accessing a selection of over 1,500 services drawing from ancient
wisdom and modern technology. Guided by world-class experts who
integrate services across a broad range of disciplines – including
nutrition, sports & performance, spa, mental health,
spirituality and more – our guests gain personal insight, skills,
and motivation that lead to true transformation long after their
stay. The value of visiting Canyon Ranch goes well beyond our warm
hospitality, luxurious spas, nutritious cuisine, and awe-inspiring
destinations located in Tucson, Arizona; Lenox, Massachusetts;
Woodside, California and Las Vegas, Nevada. For more information,
visit www.canyonranch.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. You can identify these
statements by our use of the words “assumes,” “believes,”
“estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,”
and similar expressions that do not relate to historical matters.
All statements other than statements of historical fact are
forward-looking statements. You should exercise caution in
interpreting and relying on forward-looking statements because they
involve known and unknown risks, uncertainties, and other factors
which are, in some cases, beyond the Company’s control and could
materially affect actual results, performance, or achievements.
Important risk factors that may affect the Company’s business,
results of operations and financial position (including those
stemming from the COVID-19 pandemic and changes in the economic
conditions as a result thereof and risks relating to the Company’s
pending transactions) are detailed from time to time in the
Company’s filings with the Securities and Exchange Commission. The
Company does not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise, except as may be required by
applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20221018005256/en/
Investor Contacts: Investors@viciproperties.com (646)
949-4631 Or David Kieske EVP, Chief Financial Officer
DKieske@viciproperties.com Danny Valoy Vice President, Acquisitions
& Finance DValoy@viciproperties.com
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