Packer’s Crown Resorts to sell $700m assets to cut debt

Crown Resorts plans to sell more than $700m in assets as it continues to focus on reducing debt.

Crown boss James Packer is focused on reducing costs and getting back to basics.

The James Packer-backed Crown Resorts has revealed more than $700 million in planned asset sales, including the divestment of its Las Vegas interest, as it continues to focus on reducing debt.

The company informed market late yesterday that it had entered several transactions, including the $US300m ($390m) sale of its Las Vegas land. Alon Las Vegas Resorts, which is a majority owned subsidiary of Crown, will sell its interest in a 14-hectare vacant site on Las Vegas Boulevard to a subsidiary of Wynn Resorts.

Mr Packer had long held ambitions for a ­successful Las Vegas project and in 2014 Crown bought that land, which was next to a casino owned by Steve Wynn. Challenges in financing slowed the planning and Crown had flagged last December that it was looking for a buyer for its Las Vegas asset.

As part of the asset sales revealed yesterday, Mr Packer’s private investment vehicle, Consolidated Press Holdings, and an entity associated with his sister Gretel will pick up Crown’s interest in the Ellerston property in NSW’s Hunter Valley region for $62.5m.

The property — bought by Kerry Packer in 1972 and featuring a Greg Norman-designed golf course, luxury accommodation, go-kart track, cinema and several swimming pools — was to be made available for Crown’s high-rollers when its casino at Barangaroo in Sydney opened.

“Following completion of the (Ellerston) sale, Crown will have ongoing access rights to the golf course and other facilities at Ellerston in line with its commitment to the NSW government,” Crown said yesterday.

The casino company has been on an aggressive cost-cutting drive this year and has rolled back its once grand global plans. Its three main assets are all in Australia — Sydney, Melbourne and Perth.

The cost-cutting came after the company paid a heavy price following the arrests last year of its staff in China — a move that hit its lucrative VIP business. It also exited its Macau interest after the China arrests and has played down the prospects of pushing for a casino licence in Japan.

The group also axed sponsorships of the nation’s top rugby league teams and sporting stars, the Spring Racing carnival, reviewed its fleet of private jets and cut staff.

Mr Packer, in an exclusive interview with The Australian in October from his polo ranch in Argentina, said his company was focused on reducing costs and getting back to basics.

He said his business might no longer be as big as he hoped it would be but it was still a very meaningful business with the Perth, Melbourne and Sydney properties.

Crown said it had also reached an in-principle agreement with Mr Packer to sell two floors of the residential component of its Sydney resort, for $60m. Mr Packer had said in October that he was designing an apartment in the $2.4 billion complex that would be his new home and would mark a permanent return to his homeland when the ­project was completed in three years.

The company also confirmed that it was in talks with CrownBet chief Matthew Tripp about the sale of Crown’s 62 per cent interest in the online bookmaker, which Crown said could be worth about $150m. The debt reduction plan could also be boosted by the sale of shares in Caesers Enterainment, which could net $US54m.