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

Stars align for Silver Heritage as Tiger Palace Resort’s Grand Opening draws record crowd

Stars align for Silver Heritage as Tiger Palace Resort’s Grand Opening draws record crowd There was a full-scale Bollywood party going on inside Tiger Palace Resort on Saturday night but it was owner and operator Silver Heritage Group celebrating the hardest afterwards with the huge crowd and fully booked hotel seeing revenue records tumble. Silver Heritage might not have planned on spe... Sunday, 18 March 2018 17:08

Sands China declares HK$1.00 final 2017 dividend

Sands China declares HK$1.00 final 2017 dividend Sands China has declared a final dividend of HK$1.00 per share for the year ended 31 December 2017, subject to approval at the company’s upcoming AGM. If approved, the proposed final dividend will be paid on Friday 22 June 2018. Sands China previously announced net revenues of HK$60.3 billion (U... Sunday, 18 March 2018 08:17

Imperial Pacific to ask for more time to complete Saipan resort

Imperial Pacific to ask for more time to complete Saipan resort Saipan casino operator Imperial Pacific International (IPI) could ask for a further extension on its time frame for completion of Imperial Pacific Resort, according to Executive Director of the Commonwealth Casino Commission Edward Deleon Guerrero. As reported by Marianas Variety, Guerrero met with... Saturday, 17 March 2018 18:58

VIP soars past mass in 2017 to claim 65% of NagaWorld revenue share

VIP soars past mass in 2017 to claim 65% of NagaWorld revenue share VIP gaming has taken over from mass as the primary revenue source for Cambodian integrated resort NagaWorld, with 65% of all revenue coming from VIP in 2017 compared to just 42% in the previous year. The breakdown forms part of NagaWorld owner and operator NagaCorp’s 2017 annual report, released ... Saturday, 17 March 2018 14:50

Current Issue

MGM “all-in” on Cotai

MGM “all-in” on Cotai Almost five years to the day since MGM first broke ground on its second Macau integrated resort, MGM Cotai finally opened its doors to the public on 13 February with the US$3.4 billion investment pinning its future on the premium mass market and an array of innovative features. By Ben Blaschke “... Tuesday, 27 February 2018 14:50

European vacation

European vacation Novomatic is targeting both the US and Asian markets with its recent acquisition of a 52% stake in Australian slot machine developer Ainsworth Game Technology.By Ben Blaschke WHEN Austrian gaming giant Novomatic Group confirmed the completion of its AU$500 million purchase of a 52.2% stake in Austra... Tuesday, 27 February 2018 14:48

Problem solving

Problem solving Inside Asian Gaming speaks with Davis Fong, Associate Professor in International Integrated Resort Management and Director of Institute for the Study of Commercial Gaming at the University of Macau’s Faculty of Business Administration, about the extent of gambling disorders in the Asian gaming hub... Tuesday, 27 February 2018 14:44

Gaming and the nine intelligences

Gaming and the nine intelligences Sudhir Kale explores the nine types of intelligence as defined by Harvard psychologist Howard Gardner and how they apply to the gaming industry.  DURING my decades of involvement in the gaming industry, I have had the pleasure of knowing many senior executives from all over the world. They are all... Tuesday, 27 February 2018 14:40