Century Casinos sells Alberta racino operations to Highfield Investment Group
The deal for Century Mile and Century Downs is part of Century's strategic shift to focus on its U.S. casino assets.
Century Casinos Inc. has signed a definitive agreement to sell the racing and gaming operations of its Century Mile and Century Downs properties in Alberta to Highfield Investment Group Inc. for approximately $16.4 million.
The transaction covers the operating businesses of Century Mile Racetrack and Casino in Edmonton and Century Downs Racetrack and Casino in Calgary.
"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-Chief Executive Officers Erwin Haitzmann and Peter Hoetzinger.
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The price represents a 6.1x multiple of the properties' fiscal 2025 EBITDA, the company said.
Century Casinos owns 100 percent of Century Mile and holds a 75 percent interest in Century Downs, with noncontrolling partners owning the remaining 25 percent of the Calgary property.
The underlying real estate at both sites is owned by subsidiaries of VICI Properties Inc. and is leased under a master agreement.
As part of the deal, Century and VICI will amend the master lease to remove the two Alberta properties, reducing Century's annual rent by approximately $7.5 million.
Highfield will then become the new tenant of both properties and assume the associated rent obligations.
Century Casinos intends to use the sale proceeds to reduce its indebtedness and expects the transaction to lower its lease-adjusted net leverage.
Adrian Munro, president of Highfield Investment Group, said his company sees strong long-term potential in the operations.
"We see strong long-term potential in these operations and believe they are an excellent strategic fit with our experience in hospitality, operations and horse racing," Munro said.
"We are making a significant investment in Alberta because we believe in the continued growth of this business and in the long-term value it can create."
Munro is joined by Paul Ryneveld, vice president of racing entertainment centres, a veteran racing and gaming executive with 38 years of experience.
Highfield is a Calgary-headquartered investment company with over 20 years of experience in the equine industry in western Canada.
Strategic refocus
The divestiture does not mark a complete exit from Alberta for Century Casinos.
The company will continue to operate Century Casino & Hotel in Edmonton and Century Casino in St. Albert following the transaction's close.
Century's U.S. portfolio includes properties in West Virginia, Maryland, Missouri, Colorado and Nevada, and it also operates six casinos in Poland.
John Payne, president and chief operating officer of VICI Properties, said the real estate investment trust was proud to collaborate with Century on the transaction.
"We look forward to adding Highfield to our tenant roster upon closing this transaction and believe their business plan and regional focus will help deliver strong results at Century Mile and Century Downs," Payne said.
The transaction is expected to close in the fourth quarter of 2026 or the first quarter of 2027, subject to customary regulatory approvals and closing conditions.
Macquarie Capital is serving as Century Casinos' exclusive financial advisor on the transaction, with Field Law acting as legal counsel.
Isabelle Moreau is the editor of Novello Desserts and writes about family life and everyday living in Canada. The editor signs off on corrections and editorial standards.