Realty Income Corp. acquired the real estate associated with Encore Boston Harbor.
Understanding the Encore Boston Harbor Acquisition
While the question asks who bought "Encore casino," it's important to clarify that the acquisition primarily involved the real estate. The casino's operations remain under its original management.
Here's a breakdown of the transaction:
- The Buyer: Realty Income Corp., a real estate investment trust (REIT) focused on single-tenant properties, purchased the physical land and buildings. The company views such transactions as significant investment opportunities.
- The Seller: Wynn Resorts, the original developer and operator of the property.
- What was Acquired: The real estate of Encore Boston Harbor, not the operating business.
- Transaction Value: The deal was valued at $1.7 billion.
- Operational Status: Wynn Resorts continues to operate the hotel-casino through a long-term lease agreement with Realty Income Corp. This allows Wynn Resorts to retain control over the day-to-day management and gaming operations.
Key Aspects of the Transaction
This type of transaction, often referred to as a "sale-leaseback," is common in the real estate industry, particularly for large assets like casinos or corporate headquarters. It allows the original owner (Wynn Resorts in this case) to free up capital from their real estate holdings while continuing their core business operations under a lease.
| Aspect | Detail |
|---|---|
| Buyer | Realty Income Corp. |
| Seller | Wynn Resorts |
| Asset Acquired | Real estate associated with Encore Boston Harbor |
| Transaction Value | $1.7 billion |
| Current Operator | Wynn Resorts (under a long-term lease from Realty Income Corp.) |
| Buyer's Rationale | Strategic investment opportunity, adding a high-quality asset to its portfolio |
