VICI Properties has launched a growth partnership with Canyon Ranch that could see the investor pump in as much as $300 million into the wellness resort company.
VICI has committed up to $150 million in preferred equity investment into the controlling entity of Canyon Ranch to support the growth and expansion of the business. It is also providing around $150 million of mortgage financing secured by Canyon Ranch Tucson and Canyon Ranch Lenox to refinance Canyon Ranch’s existing CMBS debt.
The initial $90 million tranche of the preferred equity investment was funded with cash on hand.
What they said
Edward Pitoniak, CEO of VICI Properties: “At VICI we seek to invest in experiential real estate centered on experiences benefitting from longer-term secular tailwinds. We believe wellness is one of the most powerful secular trends of our time, and that Canyon Ranch is one of the best-positioned global brands for capitalizing on growing demand for wellness and life enhancement, domestically and internationally.”
John Goff, owner of Canyon Ranch: “We are thrilled to partner with the expertise and capital resources of VICI. VICI shares our conviction, our values and our collaborative approach to growing the Canyon Ranch community. This partnership offers Canyon Ranch the potential to accelerate our growth in an ‘asset light’ manner, especially if we are able to capitalize on the robust Canyon Ranch economic model by acquiring with VICI conventional resorts that have high potential for conversion to Canyon Ranch resorts, thereby growing the Canyon Ranch network. Ed and I share conviction that the next few years could be a very promising time to potentially identify and acquire such resorts.”