Wynn Resorts completes sale and leaseback of Encore Boston Harbor
Wynn has completed the sale of Encore Boston Harbor real estate assets for $1.7bn.
US.- Wynn Resorts Limited has completed the sale of its Massachusetts integrated resort, Encore Boston Harbor. The property was sold to Realty Income Corporation for $1.7bn in cash, after clearing all necessary regulatory approvals. Wynn Resorts will continue to operate Encore Boston Harbor through a triple net lease arrangement.
The net proceeds of the transaction will strengthen the company’s global liquidity position to $4.4bn. The lease has an initial annual rent of $100m for a term of 30 years, with one 30-year renewal option. The rent escalates annually at 1.75 per cent for the first 10 years and the greater of 1.75 per cent or CPI (capped at 2.5 per cent) over the remaining initial lease term.
Realty Income, which has more than 11,700 properties under long-term leases, said the deal marked its first acquisition in the casino industry. Encore Boston Harbor, on the Mystic River waterfront in Everett, Massachusetts, includes a 211,000-square-foot casino, 671 hotel rooms, 16 dining and lounge venues, and approximately 71,000 square feet of ballroom and meeting spaces.
See also: Massachusetts gaming revenue climbs to $97m in October
Wynn Resorts sees 11% drop in Q3 2022 revenue
Last month, Wynn Resorts announced third-quarter revenue of $899.7m, down 11 per cent from $994.6m in the same period last year. The majority of revenue came from the company’s Las Vegas Operations with $544.4m, followed by Encore Boston Harbour with $211.8m.
For Macau, revenue totalled $75.2m and $40.4m at Wynn Palace and Wynn Macau respectively. For the third quarter of 2022, operating revenues increased $68.4m and $19.6m in Las Vegas and Boston Harbor, respectively, and decreased $106.1m and $90.3m at Wynn Palace and Wynn Macau.
