In a grand gesture that befits the opulence of the fabled city it emulates, the illustrious Venetian Resort Las Vegas is set to undergo a sumptuous refurbishment. On the very day the resort celebrated a quarter-century echoed in the chime of slot machines and the shuffling of playing cards, an exciting proclamation emerged. VICI Properties has pledged a princely sum—up to $700 million—to infuse a new era of luxury into this Las Vegas Strip cornerstone.

Artfully conceived as the Venetian Capital Investment, this treasure chest will spill open with an initial allotment of $400 million in 2024, followed by the potential for a further $300 million infusion, should the resort desire to draw upon it up until the autumnal whispers of November 1, 2026. This financial largesse is part of VICI’s Partner Property Growth Fund, a strategy designed to cultivate and elevate prized assets within its eminent collection.

Consider the staggering scaffolding of finance, constructed with meticulous care: in the second quarter of 2024, the first $100 million will be unfurled; in the third, $150 million more; and in the fourth, an additional $150 million—each draw released with the precision of a well-played hand of cards.

VICI, the behemoth that boasts the title of Sin City’s and the nation’s most extensive gaming real estate proprietor, delivers a clear signal: the future of Las Vegas is boundless and bright.

Fashioned as a pact between giants, VICI and the venerable Apollo Global Management, a titan in its right, elevate the Venetian to stratospheric heights of extravagance and splendor. Their March 2021 collaboration led to the acquisition of the Venetian, Palazzo, and what once hailed as the Sands Expo and Convention Center for a breathtaking $6.25 billion. Here, the division of dominion was clear—Apollo took the helm of operations with a $2.25 billion investment, while VICI laid claim to the very ground and air of the establishments for $4 billion.

Ancient as it may seem in the evolving landscape of Las Vegas, the triple-net lease binds the tenant—the grand steward of the property—to ensure the continual reinvention of its domain. Apollo has not shied from this duty at the Venetian.

Recent redevelopment has been grandiose, indeed: new gaming offerings, including the regal Palazzo High Limit Lounge, a sportsbook reborn in both form and name, and the arrival of a new poker room poised to debut in the rosy glow of summer’s peak.

Intriguingly, VICI, alongside other real estate investment trusts, increasingly strides into the realms of financing, no longer solely content to draw income from stoic tenancy. This strategy not only entices variety to the gold-laden streams flowing into REIT coffers. By bolstering a property’s worth, such investment rivets the cycle of prosperity to the benefit of these landlord-kings.

The script of the future grows ever more intriguing as this financial entente also foresees a ceremonious ascent in lease obligations for Apollo. In harmonious cycle with each capital vein tapped, the rent shall rise to the melody of 7.25%. As the years unfurl and 2029 dawns upon us, periodic rent hikes will cement Apollo’s promise to the Venetian, with escalations tethered to the dance of the Consumer Price Index or a steadfast 2%, all the way to a cap of 3%.

Encasing these ambitious designs, the lifeblood for the Venetian’s metamorphosis shall be drawn from VICI’s coffers and the strategic deployment of forward equity sales, ensuring that one of the world’s most iconic resorts will not only celebrate its heritage but will shimmer with the promise of the future’s unbounded potential.

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John Crew
With over six and a half years of expertise in the iGaming and Crypto industries, the professional in question transitioned from their previous role to join forces with a renowned figure in the online gaming sector. They now serve as the Global Brand Ambassador and Head On-site Reporter for Tunf, leveraging their extensive experience and insights to elevate the company's global presence and impact. This move marks a significant step in their career, symbolizing a commitment to innovation and excellence in the dynamic world of digital gaming and cryptocurrencies.


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