VICI will acquire from Caesars the real estate assets associated with the Octavius Tower at Caesars Palace and the real estate assets associated with Harrah’s Philadelphia for $507.5 million and $241.5 million, respectively. The aggregate purchase price of $749 million for these two properties will be reduced by $159 million to reflect the consideration due to VICI Properties related to the planned lease modifications described below. Caesars will continue to operate both properties under the terms of the long-term leases between both companies.
The Octavius Tower, built in 2012, is a 23-story complex that comprises 1.2 million square feet of space containing 668 hotel rooms located on the Flamingo Avenue side of Caesars Palace Las Vegas. After closing, Caesars will lease from VICI Properties the real estate associated with Octavius Tower under the modified CPLV lease agreement.
Harrah’s Philadelphia was built in 2006 and is benefiting from significant property enhancements completed in 2017. Harrah’s is located along the waterfront in Chester, Pa. The property comprises 2 million square feet of space featuring approximately 2,450 slot machines, live table games, several bars and restaurants, and parking garages. After closing, Caesars will lease from VICI Properties the real estate associated with Harrah’s Philadelphia under the non-CPLV lease agreement.
The acquisition follows VICI’s purchase of Harrah’s Las Vegas Hotel and Casino for $1.14 billion.