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Thursday, February 16, 2023

Rio On line casino Proprietor Raises $850 Million, Types REIT for Extra Offers

(Bloomberg)—Dreamscape Cos., the New York actual property investor that owns the Rio Resort & On line casino, has raised $850 million to rework the Las Vegas resort and spend money on related properties.

Eric Birnbaum, Dreamscape’s chief government officer and founder, stated in an interview he’s created an actual property funding belief to personal the two,500-room resort. He’s additionally created a property administration firm. Birnbaum sees a chance to make use of these automobiles to amass extra playing and entertainment-related belongings as customers return to enterprise and leisure journey.

“The pandemic has taught us that folks crave experiences and being with others,” he stated.

REITs, that are exempt from company revenue taxes and move alongside most of their earnings to shareholders, have turn out to be all the trend within the on line casino trade. Trusts resembling Vici Properties Inc. and Gaming & Leisure Properties Inc. personal dozens of casinos throughout the US, together with many well-known properties on the Las Vegas Strip.

Intently held Dreamscape purchased the Rio from Caesars Leisure Inc. in 2019 for $516 million. Caesars has continued to handle the property below a deal that ends this 12 months. The property, which opened in 1990, was effectively generally known as the house of the World Collection of Poker for a few years.

A lot of the cash raised will go to the REIT, with the remaining earmarked for the administration firm, Birnbaum stated. Dreamscape is planning a serious transforming of the Rio that may embrace refurbished rooms, eating places and leisure choices.

Buyers within the financing spherical embrace pension funds, insurance coverage firms and high-net value people. Raymond James Monetary Inc. helped safe the fairness portion of the financing, whereas Wells Fargo & Co. organized the debt.

–With help from Gillian Tan.

© 2023 Bloomberg L.P.

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