Wynn Resorts has completed the sale of the land and real estate assets of Encore Boston Harbor to Realty Income Corporation for $1.7bn.
The net proceeds of the transaction will further strengthen the company’s global liquidity position to $4.4bn.
Wynn Resorts will continue to operate the Encore Boston Harbor integrated resort at the five-star standard for which the company is renowned via a triple net lease arrangement with Realty Income.
The lease has an initial annual rent of $100m for a term of 30 years with one 30-year renewal option. The rent will escalate annually at a rate of 1.75 per cent for the first 10 years and the greater of 1.75 per cent or CPI (capped at 2.5 per cent) over the remaining initial lease term.