Property Transactions Purchase of Harrahs Las Vegas Real Estate On November 29, 2017 , an indirect wholly owned subsidiary of VICI (the HLV Purchaser), and Harrahs Las Vegas, LLC (the HLV Seller), a subsidiary of Caesars, entered into an agreement, pursuant to which the HLV Purchaser agreed to acquire from the HLV Seller all of the land and real property improvements associated with the property commonly known as Harrahs Las Vegas Hotel &amp; Casino (Harrahs Las Vegas) for a purchase price of $1,136.2 million . HLV Purchaser acquired the equity in a new entity (HLV Owner), which at the time of closing of the transaction on December 22, 2017 (Closing Date), became the owner of Harrahs Las Vegas. On the Closing Date, HLV Owner, as landlord, entered into an amended and restated lease with the HLV Seller, as tenant, whereby the HLV Seller leased back Harrahs Las Vegas from HLV Owner. Under the terms of the HLV Lease Agreement, the HLV Seller is responsible for ongoing costs relating to the property, including property taxes, insurance, and maintenance and repair costs that arise from the use of the property and the HLV Seller is required to continue to invest in the property and related equipment ( $171.0 million for the period commencing January 1, 2017 and ending December 31, 2021 with additional amounts stipulated thereafter). The HLV Lease Agreement has an initial 15 year term with four five -year renewal terms exercisable at the option of the HLV Seller (subject to certain conditions) and provides for a fixed base rent for each of the first seven years of the lease term equal to $87.4 million annually. In the eighth year of the lease, rent is split into an 80% fixed base rent component and 20% variable rent component, which is adjusted periodically from time to time. In addition, the HLV Lease Agreement contains an annual rent escalator on the fixed base rent equal to (i) 1% commencing in the second year of the lease and (ii) the greater of 2% or the increase in the Consumer Price Index commencin