Subject: Re: Development moves on The Strip
On Tuesday, January 2, 2018 at 9:01:03 PM UTC-8, risky biz wrote:
> 'Wynn Resorts recently announced it has reached an agreement to purchase approximately 38 acres of
land on the Las Vegas Strip directly across from Wynn Las Vegas. The purchase includes the 34 acre
site of the former New Frontier, formerly the Alon Resort site, as well as four additional acres
connected to the site for a total of $336 million.
> 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. 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 6 million square feet of
convention and exhibition space. The average cost of the full assembly of 280 acres is less than $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.'
> 'Caesars Entertainment Corp. (Caesars Entertainment or Caesars) has completed the previously
announced agreement to sell and leaseback the real estate assets associated with Harrah's Las Vegas
to VICI Properties (VICI) and to acquire adjacent land from VICI to develop a planned new convention
center. Caesars Entertainment received $1.14 billion in cash in return for Harrah's Las Vegas' real
estate assets and acquired 18.4 acres of adjacent land as part of the convention center agreement.
> "The successful closing of these transactions marks the latest step in our diversified growth
strategy," said Mark Frissora, president and CEO of Caesars Entertainment. "The proceeds of the sale
of Harrah's Las Vegas will be used to partially fund the previously announced acquisition of Centaur
and is expected to allow us to develop the convention center without increasing leverage. In
addition, the transactions will allow us to maintain Harrah's Las Vegas' connectivity to our
network, while pursuing our plans to develop another important destination right in the middle of
our center-Strip footprint."
> Caesars Entertainment will continue to operate Harrah's Las Vegas, including gaming, hotel
operations and all other amenities. The property will remain a part of the Caesars Entertainment
network and continue to benefit from the Harrah's brand, the Total Rewards loyalty network and
access to centralized services. The sale and leaseback transaction expands the recently formed
relationship between Caesars Entertainment and VICI Properties. As part of the sale and leaseback
transaction, Caesars and VICI will enter into a 15-year lease for Harrah's Las Vegas under which
Caesars will pay initial annual rent of $87.4 million. The rent will increase contractually in
subsequent years. Caesars will have the option to extend the lease for an additional 20 years via
four five-year extensions.
> The planned convention center is expected to feature 300,000 square feet of flexible meeting
space. It will have the largest column-free ballroom in the U.S., state-of-the-art technology and
flexibility to accommodate meetings of many different sizes. The conference space is expected to
accommodate more than 10,000 attendees and include an outdoor plaza.
> Caesars Entertainment and VICI Properties have negotiated for limited purchase rights with respect
to the planned convention center upon completion. Subject to certain conditions, Caesars will have
the right to require VICI to purchase the convention center and lease it back to Caesars, and in the
event Caesars does not exercise its put right, VICI will have an option to acquire the convention
center and lease it back to Caesars.'
And with these pro teams, we're in the big time now.