VICI Properties Expands Loan#
VICI Properties Inc. has announced a major increase in its mezzanine loan for the One Beverly Hills development, raising the total to $1.5 billion. This marks a substantial increase of $1.05 billion from its previous investment of $450 million. The mezzanine loan is a type of financing that sits between senior debt and equity, often used to fund construction projects.
Details of the Development#
The One Beverly Hills project spans 17.5 acres and is located in Beverly Hills, California. It is backed by a $2.8 billion senior loan led by J.P. Morgan, a major player in the banking industry. The development will feature the first West Coast location of Aman Beverly Hills, along with Aman-branded residences and an Aman Club. Additionally, the project plans to refurbish The Beverly Hilton and will include 10 acres of botanical gardens and open spaces for retail, dining, and cultural activities.
Construction Timeline#
Construction for One Beverly Hills began in 2024, with vertical construction expected to start in fall 2025. The project is set to be delivered in phases, beginning in 2027. The mezzanine loan has an initial term of four years, with a possible 12-month extension, and funds will be deployed monthly throughout this period. VICI plans to finance this investment using its available cash.
Strategic Partnerships#
In a related development, VICI, along with Cain and Eldridge Industries, has agreed to a non-binding letter of intent to create an Experiential Cross-Capital Venture. This initiative aims to explore collaborative funding opportunities for experiential investments. VICI Properties currently owns 93 experiential assets across the U.S. and Canada, including properties in gaming, hospitality, and entertainment.