Wynn Resorts has completed its Encore Boston Harbor transaction with Realty Income Corporation, selling the land and real estate of the property for $1.7bn.
Having received all necessary regulatory approvals for the deal, and with a cash cap rate of 5.9%, the net proceeds of the Massachusetts-based property transaction will bolster Wynn Resort’s global liquidity position to $4.4bn.
Under the terms of the sale, Encore Boston Harbor will continue to be operated by Wynn Resorts via a triple net lease agreement with Realty Income.
The annual rent of the lease initially begins at $100m for 30 years with an option for an additional 30-year renewal.
During the first 10 years of the lease, the rent of the property will increase by 1.75% per year, and the greater of 1.75% or CPI (capped at 2.5%) over the remaining initial lease term.
Last month, Encore Boston Harbor and Caesars Entertainment reached a preliminary agreement for Caesars to utilize the casino’s license to operate online betting in the state.