Dreamscape Companies to finance Rio Hotel & Casino Las Vegas renovation

Dreamscape Companies, a New York-based real estate development and investment firm, has successfully completed an $850m capital raise.

Wells Fargo, which led the debt syndicate and Raymond James, which headed the equity private placement, managed the funding.

With the money raised, two separate Dreamscape platforms – Dreamscape Entertainment Properties, Inc. and Dreamscape Entertainment Integrated Resorts, Inc. – which manage gaming, hospitality and entertainment assets – will be launched.

A multi-phase renovation of Dreamscape’s first gaming establishment, the iconic Rio Hotel & Casino Las Vegas, will also be funded by the capital raise.

Eric Birnbaum, CEO and Founder of Dreamscape, said: “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.”

The company bought the property from Caesars Entertainment in late 2019 and simultaneously entered a sale-leaseback agreement with Caesars to run the casino.

The two-tower building will be transformed into a resort and casino experience with modern facilities, as part of Dreamscape’s plan to preserve the history of the 1990s property.

Duane Bouligny, Managing Director, Wells Fargo’s Corporate & Investment Bank, said: “The previous year introduced unexpected and incredibly challenging financial market conditions for gaming and real estate development issuers.

Steven Loffman, Managing Director at Raymond James, said: “Dreamscape is perfectly positioned to continue its current trajectory and achieve its expansion goals.”

Meanwhile, Shopoff Reality Investments and Contour received the authorisations required to move on with the construction of their “Dream Las Vegas” hotel and casino in 2021.