Scientific Game

Wynn to buy former Alon Las Vegas site as Crown Resorts fire sale gains momentum

Friday, 15 December 2017 05:41
Visit us

By Ben Blaschke

The Las Vegas Strip site formerly pegged for Crown Resorts’ ambitious US$2.5 billion Alon Las Vegas project has been snapped up by Wynn Resorts.

In a Thursday announcement, Crown said it had entered into an agreement with a subsidiary of Wynn Resorts Ltd to sell the vacant 34.6 acre site for US$300 million – around US$100 million less than had been previously forecast. The transaction is expected to be completed by late January 2018 with Crown’s share of the gross proceeds to come in at around US$264 million.

“In June 2017, Crown wrote down the carrying value of its investment in Alon to US$200 million (or US$176 million net of minority interests),” Crown said.

Crown resorts announced in May its intention to sell the parcel of land, having previously revealed in December 2016 that it was backing out of the Alon project. Ironically, Alon co-Chairman and CEO Andrew Pascal was formerly President of Wynn Las Vegas.

In its own statement, Wynn Resorts hailed the acquisition of the land – located directly across the Las Vegas Strip from Wynn Las Vegas – as a unique opportunity.

“The agreement completes a unique assembly of contiguous real estate of approximately 280 acres that spans from the Las Vegas Convention Center on Paradise Road from the east, to Industrial Road on the west,” it said.

“The combined frontage on the Las Vegas Strip is over 3,500 feet, including rights to approximately 1,000 acre feet of water. It is adjacent to nearly six million square feet of convention and exhibition space. The average cost of the full assembly of 280 acres is less than US$3 million per acre. 

“The future development of the land will further change tourist visitation patterns in Las Vegas drawing more visitors to the north end of Las Vegas Blvd and its collection of luxury resorts, including the existing Wynn Las Vegas and the Paradise Park development slated to begin construction in January 2018 on the site of the former Wynn Golf Course.”

The sale of its Las Vegas land was one of a number of major transactions announced by Crown Resorts on Thursday, including the acquisition by way of distribution to a subsidiary of 4.2 million Caesars Entertainment Corporation shares previously held by a co-investment vehicle. Crown said it intends to sell the shares for around US$54 million.

Crown also confirmed that discussions are ongoing in regards to the sale of its 62% stake in Australian online sportsbook CrownBet for AU$150 million, while it will receive another AU$62.5 million after agreeing to sell its interest in the property and operations at luxury estate Ellerston in the Hunter Valley – two hours north of Sydney – to Gretel Packer, sister of Crown Resorts Director James Packer.

Packer himself is also getting in on the act, having reached an in-principle agreement with Crown to purchase two floors of the Crown Sydney Residences at the Crown Sydney Hotel Resort – part of the Barangaroo project – for AU$60 million. Packer revealed in a recent interview that he intended to move back to Sydney in the near future.



What's new

Japan extends Diet session to pass long-awaited IR bill

Japan extends Diet session to pass long-awaited IR bill Japan’s lower house has voted to extend the current Diet session until 22 July in order to pass key legislation, including the long-awaited IR Implementation Bill. The IR bill passed through the lower house on Tuesday but was in danger of stalling again with the standard 150-day Diet session orig... Wednesday, 20 June 2018 18:50

Resorts World Manila to launch the Philippines’ first Ritz-Carlton

Resorts World Manila to launch the Philippines’ first Ritz-Carlton By Muhammad Cohen Resorts World Manila (RWM) is set to become home to the Philippines’ first Ritz-Carlton. Inside Asian Gaming has learned that as a key part of RWM’s multi-million makeover, the current Maxims hotel is being converted into a Ritz-Carlton with the launch date scheduled for late... Wednesday, 20 June 2018 06:14

NagaCorp boss increases majority stake

NagaCorp boss increases majority stake NagaCorp CEO Chen Lip Keong has increased his shareholding in the company with the purchase of 5.4 million shares for a total consideration of HK$39.6 million. In a filing to the Hong King Stock Exchange overnight, NagaCorp said that Dr Chen had completed the on-market purchase of the shares, lifti... Wednesday, 20 June 2018 05:54

PhilWeb adds two new eGames sites to portfolio

PhilWeb adds two new eGames sites to portfolio Philippines gaming services provider PhilWeb Corporation has acquired two PAGCOR eGames sites in Consolacion and Lapu-Lapu City in Cebu through its subsidiary BigGame, Inc. The sites were acquired from Golden Frontier Gaming, PhilWeb announced, for a cash payment of Php2.5 million plus 394,322 comm... Wednesday, 20 June 2018 05:52

Current Issue

Tribal Ambition

Tribal Ambition By Muhammad Cohen and Ben Blaschke   Mohegan Gaming and Entertainment CEO Mario Kontomerkos believes the Native American casino operator has two aces in the hole for Japan, especially when it comes to the so-called regional markets beyond major areas. In his presentation at last month’s Japan ... Monday, 04 June 2018 20:55

Social Gathering

Social Gathering By Shaun McCamley   Social casino gaming is booming. In 2017, the global social gaming industry generated a whopping US$106 billion in revenues, with the social casino segment generating US$4.5 billion in revenues. Not surprisingly China, Japan and Korea generated 90% of the games revenue in the... Monday, 04 June 2018 20:44

Redefining Tourism

Redefining Tourism By Muhammad Cohen   In an era when tourism constitutes a growing portion of the global economy, integrated resorts present a potent although frequently misunderstood means for growing visitor arrivals and revenue. It’s not simply the casino but their range of attractions that make IRs such powe... Monday, 04 June 2018 20:37

Japan IR Timeline

Japan IR Timeline By Ben Blaschke   What year for Japan’s first IR? It’s a question that continues to divide industry stakeholders, the answer further clouded by the substantial disparity in opinion offered at last month’s Japan Gaming Congress (JgC) in Tokyo. At the nearer end of the scale, members of the... Monday, 04 June 2018 20:27