Wynn is also partnering with Related Companies in its bid for a Manhattan casino license. It comes at a crucial period when operators in Macau need to allocate additional capital to comply with the special administrative region’s new gaming laws. Wynn has the option to sell that land to the REIT for up to $20 million in rent credits for up to six years after the initial deal.Īccording to Wynn Resorts, the sale of Encore Boston Harbor will boost its liquidity position, which currently stands at $4.4 billion. The casino operator is planning to construct an expansion that is expected to include additional parking and other non-gaming amenities. The rent will escalate at a rate of 1.75% for the first decade, and the greater between 1.75% or the Consumer Price Index (CPI), capped at 2.5%, over the remainder of the lease term.Īs part of the accord, Wynn is keeping 13 acres of land on the east side of Broadway in Everett. Under the deal, Wynn Resorts will continue to operate Boston Encore Harbor via a triple net lease agreement worth $100 million over 30 years, with another 30-year renewal option. The REIT company owns over 11,700 real properties owned under a long-term lease agreement.

The all-cash deal comes at a cap rate of 5.9% and is Realty Income’s first sale-leaseback transaction involving a gaming company.

Wynn Resorts announced the sale last February and the transaction only completed last week. Wynn sells Encore Boston Harbor real estate assets for $1.7bn Wynn Announces Sale of Encore Real Property

Meanwhile, real estate investment trust companies acquire assets for long-term net lease agreements. These are often seen as win-win deals for both casino operators and realty companies with the former monetizing their land assets to increase liquidity. Sale-leaseback deals are a common practice in the industry. Wynn Resorts announced last Thursday that it has completed the previously announced sale of the real property assets of Encore Boston Harbor to Realty Income for $1.7 billion in a sale-leaseback deal.

Boston Encore Harbor is the top-performing casino in the state as far as revenues are concerned.

Wynn will continue to operate the casino and keep a 13-acre land on the east side of Broadway.

Wynn Resorts has completed the sale of the real property assets of Encore Boston Harbor to Realty Income for $1.7 billion.

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