VICI Properties partners with Great Wolf Resorts
VICI Properties has entered into a strategic arrangement with Great Wolf Resorts (Great Wolf) – a Blackstone Real Estate portfolio company – whereby VICI Properties may provide certain financing for the construction and development of Great Wolf Lodge resorts throughout the United States.
As part of this arrangement, VICI Properties has agreed to provide a USD79.5 million mezzanine loan investment related to the development of the more than USD250 million Great Wolf Lodge Mid-Atlantic project in Perryville, MD, which was announced today and is expected to be completed by the summer of 2023. The mezzanine loan has an interest rate of 8 per cent and an initial term of three years with two successive 12-month extension options subject to certain conditions. The investment is expected to be funded in accordance with a construction draw schedule.
In addition, pursuant to a non-binding letter agreement, VICI Properties will have the opportunity for a period of up to five years to provide up to a total of USD300 million of mezzanine financing for the development and construction of Great Wolf’s extensive domestic and international indoor water park resort pipeline.
David Kieske, Executive Vice President and Chief Financial Officer of VICI Properties, says: “This strategic arrangement with Great Wolf, the leading indoor water park resort operator in the US, and Blackstone, a global leader in real estate investing, represents the continuation of partnering with the best leisure and hospitality operators in diversifying VICI’s investments and expanding our overall platform. We have studied the indoor water park resort sector extensively and this investment reflects our high conviction in the experiential and operational complexity, resiliency and barriers to entry that make this a very attractive sector for our capital. VICI has a proven track record of working collaboratively with operating partners to creatively structure transactions that work for all parties and we are excited to support the Great Wolf team as they continue to expand the company.”