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Packer and Pascal Purchase New Frontier Parcel

By Chuckmonster on Sunday, 3rd August 2014 10:59pm
  » filed under Mergers & Acquisitions  comments: 19

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Melbourne based Crown Resorts LTD announced on Monday August 4, 2014 that they have entered into an agreement with former Wynn Resorts President and COO Andrew Pascal and Oaktree Capital Management L.P. (holders of defaulted mortgage) to purchase the 34.6 acre former New Frontier parcel on the Las Vegas Strip for $280 million USD.

The press release - in content and structure - is thoroughly fascinating.

After the initial paragraph announcing the deal, the first quote - historically the grand beaming words of the projects proud parent - is from Andrew Pascal.

"For over 25 years, I've studied the ever‐shifting Las Vegas landscape," said Andrew Pascal, Co‐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."

Once more for emphasis:

Co-Chairman and CEO of the new company

James Packer is up next...

And while we fell short in past attempts to enter [the Las Vegas] 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."

Partner. Not employee. Andrew Pascal isn't anybody's employee.

Lastly, Oaktree's President Bruce Karsh (Oaktree is the holders of El Ad's defaulted mortgage) said:

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.

With cunning creativity and the ability to craft a deal between a billfold and a bondholder, the student not only became a master... he challenged his master to a knife fight in the middle of Las Vegas Boulevard.

When?

While the plans for the new development are still being finalized, the company expects to break ground in the latter part of 2015 and complete the project in 2018.

This. I fucking mean THIS folks. THIS. THIS right here is the reason why I LOVE the Las Vegas casino business. No hype, no adjectives, no bullshit financing or empty promises - just a crusher of a deal served with a side order of blood feud revenge.

I, for one, can't fucking wait to eat at Elaine's on opening night.

Congrats Andrew!

And don't miss the Vegas Gang episode with Andrew Pascal, 12/19/2013.



Tagged: andrew pascal   james packer   oaktree   new frontier   deals   crown   steve wynn   



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Comments & Discussion:

So do they have any idea what the place will look like?

Meanwhile, here in Atlantic Cty.....uggg. Forget it.

Awesome, exciting news. It's been a long time since we have seen any significant new resorts. Between the Resorts World project and Crown, and to a lesser degree SLS, we finally have some major projects to look forward to! It will be great to see some new blood competing in the Vegas market.

Does the new competition change the odds of Wynn taking another look at any new Vegas projects/golf course redevelopment? Or does he wait and see if the market can absorb the new entrants?

Be interested to see if Trump moves to sell its remaining parcel or build that second tower out. Either way, it's a piece of land that just became a little more valuable as far as space is concerned.

It will be interesting to see how this building looks. Does it face Wynn and Encore, south down the boulevard, toward I-15? Does the building react to its immediate neighbor immediately to the north? So many questions and possibilities.

Use of 'immediate' is a thing for me right now.

SLS. Wynn and Encore. Resorts World. MGM's own rock-concert venue. This latest thing.

If I were the boss at Mandalay Bay, I'd be very, very nervous about life in the next five years as all of the energy on the Strip expands northward. It's not like the de-themed Luxor or the graying Excalibur are drawing folks to the southern properties.

Anyway, it should be interesting to watch all the north-strip drama play out.

Might all this development be the shot in the arm needed to give Riviera and Circus Circus new life, too?

if riv can hold on for a few more years they may be in good shape.

I don't think mandalay should be any more worried than normal. they have been a chore to get to for years, and that end of the strip remains pretty healthy.

I would love to see them dust off the plans for Crown Las Vegas that was cancelled back in 2008.

Now we just need something to happen with the Fontainebleau site and the neighboring site between it and SLS. I've lost track of the various projects proposed for that parcel....

Fuck. The Strip just got exciting again.

Hope they have a container park. FAAAAAAART.

Great to see some ownership diversity...(SLS, Resorts World, Crown) The competition should finally force MGM and Caesars to focus on their guests. (I'm looking at you Harrah's, that room, was filthy last visit)

This would be even better if they made in Australia themed: fill it with every deadly creature on the planet and REALLY gamble!!!

Packer has a lot of projects in the hopper. At least Andrew Pascal can keep the focus on this one. He definitely has the resume to walk the walk.

This end of the Strip will be the new center strip.. Lots of activity up there. Trump should sell the un-used land to Packer. This way they can do something even grander.. Packer once said that, Wynn advised him to build the best that you can afford and the rewards will follow. I'm sure he paid attention and will do so.

Resorts world alone had me excited. This new news takes it to a whole new level.

Speaking of Resorts World, isn't it about time that we start to see activity at the Echelon site to get this thing rolling for a (hopefully) 2016 opening?

I'm so happy that another independently owned casino resort will be built on the Strip.

crown Vegas? this going to be fucking rad. given everything they've learned in Macau, this is going to be one of the most efficient and vertically integrated properties on the strip.

The thought of an Altira in Las Vegas gives me wood.

I just had an interesting thought this morning regarding the possibilities for this site. What if Packer & company were to acquire Trump International and turn it into something along the lines of Signature or THEHotel/Delano? The only hitch there may be with those that actually own units there as well as the deal with Hilton that saw them acquire some of the rooms there which are marketed through their Hilton Grand Vacations division.

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