US-based investor Realty Income, which made its debut in the UK with 2019 with the acquisition of 12 Sainsbury’s supermarkets, has entered into a $1.7bn (£1.2bn) sale-and-leaseback of the 3.1m sq ft Encore Boston Harbor resort in Massachusetts.
The firm has agreed the deal with operator Wynn Resorts on a 30-year term with rental growth for the first 10 years capped at 1.75%, shifting to 1.75% of consumer price inflation, capped at 2.5%, for the remainder of the term. The initial rent will total $100m. The lease also includes an additional 30-year option to renew on expiration.
Wynn will retain its 13-acre of developable land on the east side of the resort, where it plans to build additional covered parking along with other non-gaming amenities. The firm has secured an option to sell the related land and real estate assets of the expansion to Realty for up to $20m of additional rent, at a specified cap rate, for up to six years following the closing of the deal.
