After abandoning plans for its Las Vegas Alon casino project a year ago, Crown Resorts has now sold that property which, had it been developed, would have represented the Australian group’s first foray into the U.S.
Wynn Resorts will pay US$300 million for the 34 acres of the former New Frontier as well as four additional acres connected to the site in a deal which should be finalized by late January.
In December last year, on the heels of a gambling crackdown in China, Crown pulled out of plans for the Alon project while simultaneously selling half its stake in Macau-focused Melco Crown Entertainment Ltd. to Hong Kong businessman and CEO of Melco International Lawrence Ho.
At the time, Reuters reported that Crown said it would use the A$1.6 billion (US$1.2 billion) proceeds from the sale of its Macau stake to cut debt and pay a special dividend of A$500 million (US$379 million), more than half of which would go to the company’s CEO, Australian billionaire James Packer.
Despite an increase construction and land sales around the valley in Las Vegas, buyers are largely ignoring vacant parcels on the famed Las Vegas Boulevard, according to reporting from the Las Vegas Review-Journal. The publication cites high prices with less feasibility for large-scale projects today versus when the valley saw easy money come in during the boom years.