GGRAsia – Crown seeks US$400 mln for Las Vegas land plot

Crown seeks US$400 mln for Las Vegas land plot

May 22, 2017 Newsdesk Latest News, Top of the deck, World

Australia-based gaming operator Crown Resorts Ltd has hired brokerage CBRE Group to sell its land plot in Las Vegas, in the United States, where the Alon casino and hotel project was to be built. The casino operator had already announced in December that it would no longer pursue the Alon casino and hotel project on the Las Vegas Strip.

“This is one of the most exciting properties to become available in Las Vegas in a long time,” listing broker John Knott, head of CBRE’s global gaming group, said in a press release. The brokerage said the land is being offered at US$400 million.

A subsidiary of Crown Resorts had acquired the parcel of land in Las Vegas in 2014, paying a reported US$280 million. The site was formally occupied by the New Frontier casino.

The Australian company owns 18.4 acres (7.4-hectares) of the site and is leasing the remaining 16.2 acres from the previous owners. CBRE said the rented portion of the land is part of the new deal, according to the Las Vegas Review-Journal. Buyers could still pursue the Alon project but wouldn’t be obligated to, added the newspaper, quoting the brokerage.

The intention to sell the Las Vegas land follows Crown Resorts’ disposal of its entire stake in Asian casino developer Melco Resorts and Entertainment Ltd. The Australian firm – controlled by billionaire James Packer – said it expected to use the approximately US$987-million proceeds of that deal to reduce debt.

As the result of the sell down in Melco Resorts and the decision to sell the land plot in Las Vegas, Crown Resorts disposes of all of its international investments.

Crown Resorts announced last week that it had received “all necessary regulatory approvals” for the appointment of Mr Packer as a director of the company. Mr Packer had stepped down as a director of Crown Resorts in December 2015, after resigning as chairman in August 2015.