Hospitality company Wynn Resorts and Crown Acquisitions, a real estate acquisitions and investment company, have formed a joint venture to own and operate the premier luxury retail space at Wynn Las Vegas.
Under the terms of the deal, Crown will pay $472 million in gross proceeds in two installments. Crown will pay Wynn the first payment of $292 million at closing, which is expected to be in 2016 or early 2017, for its 49.9% interest in a portion of Wynn Las Vegas’ owned and leased retail. Wynn will receive the second fixed payment of $180 million following the completion of Wynn Plaza in 2017.
On a combined basis, Wynn expects the sale of a 49.9% interest in its retail operations. The joint venture will own approximately 88,233 square feet of existing retail space at Wynn and Encore Las Vegas, as well as the 72,851 sq ft Wynn Plaza currently under construction at Wynn Las Vegas. Wynn Resorts will act as the managing member, and will hold a 50.1% stake in the of the joint venture.