Crown Resorts Limited has acquired a 34.6-acre vacant site, formerly occupied by the New Frontier Casino, on Las Vegas Boulevard for approximately $280 million via a foreclosure auction.
Along with Andrew Pascal, former President and COO of Wynn Las Vegas, and with financial support from Oaktree Capital Management L.P., the three entities have created a new unnamed resort company. Plans for the site are still being finalized, but according to a press release the company expects to break ground in the latter part of 2015 and complete the project in 2018.
“For over 25 years, I’ve studied the ever‐shifting Las Vegas landscape,” said Pascal, who will serve as a Chairman and CEO of the new company. “I’ve always been inspired by this city’s capacity for reinvention. I’m excited to have my hand in crafting something new and fresh for the resurgent Las Vegas market.”
Likewise, Chairman of Crown Resorts Limited James Packer, who will also serve as a Chairman of the new company said, “You can’t be in the gaming industry and not have a special reverence for Las Vegas — that’s where it all began. As we have built Crown Resorts into a thriving international company with successful casino ventures in Australia, Macau, and London, we’ve always kept our eye on Las Vegas. And while we fell short in past attempts to enter that market, we now have the ideal opportunity — with a great local partner in Andrew, a leading financial investor in Oaktree, and the perfect piece of property."
Crown Resorts is one of Australia’s largest entertainment groups, and is the corporation behind the southern hemisphere’s most prestigious tournament series – the Aussie Millions. The 2015 Aussie Millions Poker Championship will take place from Wednesday, January 14 through Monday, February 2, 2015 and will consist of 21 events, which you can view here.
“We acquired our interest in the storied Frontier site because we believed it was the best piece of undeveloped land on the Las Vegas Strip,” said Bruce Karsh, President of Oaktree, a leader among global investment managers specializing in alternative investments. “When Andrew approached us and shared his vision for the site and his partnership with Crown, we were eager to reinvest a portion of the proceeds from our debt investment and become an equity partner in their exciting new venture.”
According to Bloomberg, the development is Crown’s third try in gaining a foothold in Las Vegas after Fontainebleau Resorts LLC and Cannery Casino Resorts LLC both failed to prosper.