Rio Owner Dreamscape Lands $850M in Financing, Eyes More Casino Deals
Dreamscape Companies, which owns the attribute assets of the Rio Hotel & Casino Las Vegas, raised $850 one thousand thousand inward capital, paving material the path for the existent estate developer to broaden its footmark inwards the gaming industry.
The New York-based tangible land firm said the cash in testament be used to make Dreamscape Entertainment Properties, Inc. and Dreamscape Entertainment Integrated Resorts, Inc. The former will be an existential existent land investiture trustingness (REIT) owning gaming, hospitality, and entertainment assets, patch the latter testament live an operator of such venues.
These new, independent Dreamscape platforms will sharpen on investment and operating inward strategically located, high-barrier-to-entry markets with asymmetric growing potential,” according to a statement.
Dreamscape didn’t cite specific markets, but Las Vegas fits the banknote as “high-barrier-to-entry.” With an naturalized footmark and report in New York, Dreamscape could also follow a participant in that city’s nascent casino-gaming industry. Still, the company didn’t name that as a possibility.
Rio Renovations Are Coming
Dreamscape is the owner of the prop assets of the Rio. Caesars Entertainment (NASDAQ: CZR) continues to control the locale following a $516.3 gazillion sale-leaseback business deal struck betwixt the II companies inwards December 2019.
The real landed estate developer said a portion of the $850 billion raised will follow directed to refurbishing the Rio, which is more than trio decades old. Such an elbow grease is needed because visitors aren’t overly enthusiastic near the venue. Rio’s average out nock on Priceline and Zen Hotels is 6.7 come out of 10, and its rating on Google Reviews is 3.9 stars come out of a possible five.
“With the purport to keep the property’s finger cymbals and honour its legacy, Dreamscape will enjoyment the financing to reimagine the two-tower structure, restoring it into a premiere resort hotel and casino experience with modernized amenities and an raiment of offerings that speak to today’s gaming and hospitality consumer. The holding testament remain undetermined throughout the renovation, with the fellowship slated to officially take over and handle operations at the holiday resort in 2023,” according to the statement.
What’s interesting about Dreamscape propping up upwardly the Rio is that such a make a motion isn’t a banner operating process inwards gaming industry sale-leasebacks. Typically, the operator of the locus — not the landlord — is responsible for(p) for enhancements, maintenance, and upkeep.
Dreamscape Entering Competitive Field
Dreamscape Entertainment Properties, the planned experiential REIT, is entering an ultra-competitive — though little theatre — inward the gaming space. Currently, on that point are just now II dedicated cassino landlords – Gaming and Leisure Properties (NASDAQ: GLPI) and VICI Properties (NYSE: VICI).
Still, there’s room for more rivalry inward the space. For example, utmost year, Wynn Resorts (NASDAQ: WYNN) sold the belongings assets of Encore Boston Harbor to Realty Income (NYSE: O), which previously wasn’t engaged inward casino existent estate. Additionally, the combat for a New House of York City gambling casino countenance includes multiple REITs that previously weren’t major players inward the gaming arena.
The potentially honest word for Dreamscape Entertainment Properties is that cassino sale-leasebacks are increasing inwards frequency. There’s ease a monolithic amount of gaming real land currently owned by operators that could be sold as those companies looking for to erect capital.
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