Benzinga | Jul 20, 2021 04:16PM EDT

VICI Properties Reports Strategic Arrangement With Great Wolf Resorts, Blackstone

VICI Properties Inc. (NYSE:VICI) ("VICI Properties" or the "Company") announced today that the Company has entered into a strategic arrangement with Great Wolf Resorts, Inc. ("Great Wolf") (a Blackstone Real Estate ("Blackstone") 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 $79.5 million mezzanine loan investment related to the development of the more than $250 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% and an initial term of 3 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 $300 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, said, "This strategic arrangement with Great Wolf, the leading indoor water park resort operator in the U.S., 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."

Great Wolf Lodge Maryland will be a year-round family destination filled with attractions and amenities for all ages. The resort will sit on 48-acres and feature:

* An expansive 126,000-square-foot indoor waterpark, heated to a comfortable 84 degrees and featuring a variety of body slides, tube slides, raft rides, activity pools and splash areas for every member of the family -- from toddlers and teens, to parents and grandparents

* A 57,000-square-foot family entertainment center known as the Great Wolf Adventure Park will offer a variety of family-friendly attractions, including MagiQuest -- Great Wolf Lodge's exclusive live-action adventure game where players use interactive magic wands to battle goblins and dragons

* A collection of complimentary family events and activities including Yoga Tails, a morning exercise program that combines tales from animal friends found in the Northwoods with yoga poses, and Great Wolf Lodge's signature Story Time event, where children gather around the fireplace for a bedtime tale

* Several dining options that will appeal to a variety of culinary styles ranging from pizza and burgers, to upscale dining at Barnwood and premium ice cream treats at Wood's End Creamery

* Family friendly suites in a variety of categories and styles including Great Wolf themed suites with separate sleeping quarters for kids designed as either a log cabin or wolf den and outfitted with bunk beds and Great Wolf character theming. The resort will also feature approximately 700 rooms, including suites with multiple bedrooms for large families or multi-generational groups

* Approximately 12,000 square-feet of flexible conference space with breakout rooms, built-in A/V technology, customizable catering options and a team of dedicated industry professionals to tend to every meeting need.