According to Globest, VICI Properties has acquired 38 bowling centers across 17 states from Bowlero Corp. in a $432.9 million sale leaseback. The S&P REIT holds major gaming and entertainment destinations across the U.S.
“The lease will have an initial total annual rent of $31.6 million, representing an acquisition cap rate of 7.3%, and an initial term of 25 years, with six 5-year tenant renewal options,” the company announced. VICI also has a right to first offer to buy current or future Bowlero real estate properties.
“At VICI, we seek to invest in non-commodity real estate centered on experiences benefiting from long-term secular tailwinds, and Bowlero’s track record of growth and innovation in a resilient experiential sector aligns well with our investment framework,” explained John Payne, president and COO of VICI Properties.