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US – Dreamscape raises $850m to renovate Rio Las Vegas

By - 16 February 2023

Dreamscape Companies, a New York-based real estate development and investment firm, has said it will renovate its Rio Hotel & Casino Las Vegas and create two divisions of resort casino businesses with $850m of capital it has raised.

The capital raised will launch two independent Dreamscape platforms: Dreamscape Entertainment Properties, an experiential real estate investment trust that will own gaming, hospitality and entertainment assets, and Dreamscape Entertainment Integrated Resorts, an operator of gaming, hospitality and entertainment assets. These new, independent Dreamscape platforms will focus on investing and operating in strategically located, high-barrier-to-entry markets with asymmetric growth potential. The success of this latest capital raise demonstrates Dreamscape’s commitment to diversifying its capabilities and deepening its presence in key markets throughout the US.

“As Dreamscape continues to evolve and expand, we knew the gaming and entertainment sector would be a natural fit and become a central part of our business,” said Eric Birnbaum, CEO and Founder of Dreamscape. “We are passionate about creating dynamic lifestyle experiences. I strongly believe that with our team’s unique development capabilities, investment acumen and deep operating expertise, we are poised to become a differentiated player within this space.”

The capital raise will also finance a multi-phase renovation of Dreamscape’s first gaming property, the iconic Rio Hotel & Casino Las Vegas. The company acquired the property in late 2019 from Caesars Entertainment, contemporaneously entering into a sale lease-back with Caesars to operate the property. As the first all-suite hotel to hit the Las Vegas Strip in 1990, the resort holds a prominent position in the city’s storied past. With the intent to preserve the property’s bones and honor its legacy, Dreamscape will use the financing to reimagine the two-tower structure, restoring it into a premiere resort and casino experience with modernized amenities and an array of offerings that speak to today’s gaming and hospitality consumer. The property will remain open throughout the renovation, with the company slated to officially take over and manage operations at the resort in 2023.

“The previous year introduced unexpected and incredibly challenging financial market conditions for gaming and real estate development issuers,” said Duane Bouligny, managing director in Wells Fargo’s Corporate & Investment Bank. “Amidst this challenging economic environment, we are pleased to have successfully led the debt capital raise for Dreamscape as the company launches its new gaming and entertainment platforms, renovates its first gaming property, and continues to diversify and scale.”

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