WYNN PARTNERS WITH CROWN ACQUISITIONS TO DEVELOP RETAIL OFFERINGS AT LAS VEGAS RESORT
Luxury hotel operators Wynn Resorts and commercial real estate firm Crown Acquisitions has signed an agreement to form a joint venture to own and operate the premier luxury retail space at Wynn Las Vegas.
Under the terms of the agreement and subject to certain customary conditions to closing, Crown will pay $472 million in gross proceeds in two installments. Crown will pay Wynn the first payment of $292 million at closing, which is expected to be in 2016 or early 2017, for its 49.9 percent interest in a portion of Wynn Las Vegas’ owned and leased retail, representing a 4.7 percent capitalization rate. Wynn will receive the second fixed payment of $180 million following the completion of Wynn Plaza in 2017. On a combined basis, Wynn expects the sale of a 49.9 percent interest in its retail operations to represent a capitalization-rate range of 4.5 to 5 percent.
The joint venture will own approximately 88,233 square-feet of existing retail space at Wynn and Encore Las Vegas plus the 72,851 square-foot Wynn Plaza currently under construction at Wynn Las Vegas.
Wynn Resorts will act as the managing member and maintain 50.1 percent ownership of the newly formed retail joint venture.
