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July 27, 2023

Kramer Levin Advises VICI in Preferred Equity Investment in Canyon Ranch and Anticipated Mortgage Loan for Canyon Ranch Tucson and Canyon Ranch Lenox

On July 26, 2023, Kramer Levin client VICI Properties Inc. (VICI) committed to an up to $150 million preferred equity investment (Preferred Equity Investment) in the controlling entity of Canyon Ranch. 

In connection with the Preferred Equity Investment, VICI also entered into (i) a call right agreement relating to the real assets of each of Canyon Ranch in Tucson, AZ and Canyon Ranch in Lenox, MA subject to certain conditions and (ii) a right of first financing agreement whereby VICI has the first right, but not the obligation, to serve as the real estate capital financing partner for Canyon Ranch with respect to the acquisition, build-out and/or redevelopment of future wellness resorts. If the call right(s) are exercised, then Canyon Ranch would continue to operate the applicable wellness resort(s) subject to a long-term triple-net master lease with VICI.

In addition to the Preferred Equity Investment, VICI intends to provide approximately $150 million of mortgage financing secured by each of Canyon Ranch Tucson and Canyon Ranch Lenox.

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