- Legal States
Stoyan Todorov December 2, 2022 2 min read
Wynn Resorts Ltd Finalizes Sale of Encore Boston Harbor
US casino giant Wynn Resorts Limited has completed the sale of its integrated resort in Massachusetts, Encore Boston Harbor. The news came early on Friday, and the move is part of the company’s plans to increase its war chest as it pivots towards new projects. The property was sold to Realty Income Corporation for $1.7 billion in cash, after clearing all necessary regulatory approvals.
Wynn Seals the Deal on Encore Boston Harbor
The deal now boosts Wynn’s present global liquidity position to $4.4 billion, which means that the company will have more funds to manage when it seeks to bolster existing operations or invest in upcoming projects. Having recently won a license extension from Macau’s government, Wynn will need to invest further in the Special Administrative Region (SAR) and seek to boost tourism.
In the meantime, the company is also planning on an expansion in the United Arab Emirates with the Wynn Marjan set to open in 2026 in Ras Al Khaimah, and one of the most ambitious international projects undertaken by a resorts company. However, Wynn is only divesting the real estate, not its operational stake in Encore Boston Harbor, and the company will remain in control.
Wynn will pay $100 million in annual rent over the next 30 years, with a lease renewal option. Meanwhile, Wynn Resorts reported $142.9 million in the third quarter of the year. The company’s business operations remained strong in the United States, with the flagship properties Wynn Las Vegas and Encore Boston Harbor posting solid performance, but the company taking a hit in Macau where the gaming sector has come to a halt due to low visitation numbers and recurrent COVID-19 outbreaks and subsequent lockdowns in mainland China and the SAR.
Wynn Macau announced adjustments to its business model in the SAR earlier this week to comply with the new gambling laws in the administrative region. Sands China undertook a similar restructuring of the share capital of its Macau subsidiary, Venetian Macau Ltd.