VICI Properties will provide capital to The Venetian Resort Las Vegas for extensive reinvestment projects through VICI’s Partner Property Growth Fund. The Venetian Capital Investment will fund several projects, including hotel room product renovations, gaming floor optimization, and entertainment and convention center enhancements.
VICI has agreed to provide up to $700 million of financing through the Venetian Capital Investment, comprised of $400 million to be drawn in 2024 and an incremental $300 million that The Venetian Resort will have the option to draw in whole or in part until November 1, 2026.
Annual rent under the existing Venetian Resort lease will increase commencing on the first day of the quarter immediately following each capital funding at a 7.25% yield. The Incremental Venetian Rent will begin escalating annually at 2.0% on March 1, 2029, and commencing on March 1, 2031, will begin escalating on the same terms as the rest of the rent payable under the Venetian Resort Lease with annual escalation equal to the greater of 2.0% or CPI, capped at 3.0%.
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