A vacant site comprised of 34.6 acres on Las Vegas Boulevard was just acquired by Crown Resorts Limited. Previously the New Frontier Casino sat on the newly acquired site and through a foreclosure auction Crown acquired the property for approximately $280 million.
Financial support for the venture comes in from Oaktree Capital Management L.P., combine that with Andrew Pascal, former President and COO of Wynn Las Vegas, and Crown and — BOOM! — a new unnamed resort company has been formed. Site plans are in the works. The project is expected to be complete in 2018 with ground breaking commencing towards the end of 2015 according to a press release by the company.
Chairman and CEO of the new company, Pascal said, “For over 25 years, I’ve studied the ever‐shifting Las Vegas landscape. 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.”
Chairman of Crown Resorts Limited James Packer who will take on the role of chairman of the new company added additional comments to the press release, “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 the driving force behind the southern hemisphere’s most prestigious tournament series – the Aussie Millions.
“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.”
Bloomberg reports that the development is Crown’s third attempt in gaining a foothold in Las Vegas after Fontainebleau Resorts LLC and Cannery Casino Resorts LLC both failed to grow as hoped.