Wynn completes $1.7b Encore Boston Harbor Land and real estate sale leaseback transaction

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.