Century Casinos (NASDAQ: CNTY) has announced the sale of the operating rights to Century Mile Racetrack and Casino in Edmonton, Alberta, and Century Downs Racetrack and Casino in Calgary, Alberta to Highfield Investment Group for $16.4 million. This move is part of Century’s strategy to streamline its international portfolio and enhance value for investors.
The sale price is based on a multiple of 6.1x of the venues’ 2025 EBITDA. Century, headquartered in Colorado, will utilize the proceeds from the transaction to reduce debt levels.
The deal with Highfield Investment Group is expected to close in either the fourth quarter of this year or the first quarter of 2027. Highfield is based in Calgary and is involved in various sectors, including real estate development, land management, hospitality, and energy services.
Century Casinos Investors Likely Seeking More
Despite a recent decline in Century’s stock price, selling the Canadian assets is seen as a positive step for the company’s financial health. With a focus on its U.S. portfolio, Century aims to capitalize on growth opportunities in that market.
“As part of our ongoing strategic review process, the sale of Century Mile and Century Downs racinos is an important step towards concentrating our resources on our U.S. properties, where we see the strongest opportunities for growth,” said co-CEOs Erwin Haitzmann and Peter Hoetzinger in a statement. “This transaction improves our financial flexibility and operational efficiency as we focus on our core U.S. assets.”
Century still holds interests in venues in Edmonton and St. Albert, which could also potentially be divested in the future. Investors are keen on developments regarding Century’s stake in Casinos Poland, another potential asset slated for divestment.
Additional Benefits in the Canadian Sale
In addition to streamlining its portfolio, Century also frees itself from $7.5 million in annual rent obligations to landlord VICI Properties. Highfield has entered into a new lease agreement with VICI, providing continuity in lease terms.
This transaction benefits VICI Properties by expanding its tenant base and diversifying its portfolio.