Wynn Resorts has completed the sale of the land and real estate assets of Encore Boston Harbor to Realty Income Corp. for $1.7 billion in cash, representing a cash-cap rate of 5.9 percent, having received all necessary regulatory approvals. The net proceeds of the transaction further strengthen the company’s global liquidity position to $4.4 billion.
Wynn Resorts will continue to operate the Encore Boston Harbor integrated resort at the five-star standard via a triple-net-lease arrangement with Realty Income. The lease has an initial annual rent of $100 million for a term of 30 years with one 30-year renewal option. The rent will escalate annually at a rate of 1.75 percent for the first 10 years and the greater of 1.75 percent or CPI (capped at 2.5 percent) during the remaining initial lease term.
