Wynn Resorts, Crown Acquisitions To Form JV On Retail Space At Wynn Las Vegas

(RTTNews) - Wynn Resorts (WYNN) and Crown Acquisitions signed an agreement to form a joint venture to own and operate the premier luxury retail space at Wynn Las Vegas.

As per the terms of the agreement, 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, representing a 4.7% capitalization rate. 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 to represent a capitalization-rate range of 4.5 to 5.0%. The joint venture will own approximately 88,233 square feet of existing retail space at Wynn and Encore Las Vegas plus the 72,851 square foot Wynn Plaza currently under construction at Wynn Las Vegas. Wynn Resorts will act as the managing member and maintain 50.1% ownership of the newly formed retail joint venture.