Vici Properties enters triple-net lease with Hard Rock for Mirage Hotel & Casino
Vici Properties $Vici Properties(VICI)$ has entered into a triple-net lease agreement with Hard Rock International, as part of Hard Rock's acquisition of the operations of the Mirage Hotel & Casino, it said Monday.
Under terms of the agreement, Hard Rock rents the Mirage's real property from Vici (VICI). Initial total annual rent under the lease with Hard Rock is $90.0M, with an initial term of 25 years plus three 10-year tenant renewal options. Rent under the lease will increase annually by 2.0% (with escalation of 2.0% or the rate of CPI, whichever is the greatest and subject to a cap of 3.0%, beginning in year 11). The tenant's obligations under the lease will be guaranteed by Hard Rock.
Annual base rent payments under Vici's (VICI) master lease with MGM Resorts International (MGM) have been reduced by $90.0M, to a total of $770.0M, to account for MGM's divestiture of the Mirage operations.
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