Wynn Resorts To Sell Encore Boston Harbor Real Estate

Wynn Resorts today announced a definitive agreement to sell all of its land and real estate properties in Encore Boston Harbor to Realty Income for $1.7 billion in cash, meaning a 5.9% cap. Wynn Resorts will continue to operate the properties on a five-star basis the company is known for.

Upon closing of the transaction, we will enter into a triple net lease for Encore Boston Harbor with Real Estate Income. The lease is 30 years, with an initial annual rent of $100 million. During the lease, the rent will increase to 1.75% for the first 10 years of the lease, with a greater than 1.75% increase in CPI for the rest of the year (upper limit of 2.50%).

Wynn will hold its 13-acre developable land east of Broadway in Everett, Massachusetts, with some of it planned to expand, including additional covered parking and other non-game amenities. The company has secured the option to sell the related land and real estate assets of these expansions to Realty Income for up to $20 million in additional rent, up to a designated maximum of six years after the close of the transaction.

The transaction is subject to customary closing conditions, including required regulatory approvals, and will be completed during the fourth quarter of 2022.

"Encore Boston Harbor is the premier gaming resort on the East Coast and the valuation achieved in this sale reflects the quality of the property," said Craig Billings, CEO of Wynn Resorts. " Equally important, the customized structure and rental conditions allow us to maintain a lot of operational flexibility throughout the economic cycle. Proceeds from the transaction also provide us with liquidity for some upcoming development projects and the potential to retire other debt."  온라인 슬롯

Kirkland & Ellis LLP and Latham & Watkins LLP served as legal counsel to Wynn Resorts in connection with this transaction.