Successful Cap Raise for Dreamscape Provides Intrigue
Real estate and investment firm Dreamscape Companies, based in New York, has put the finishing touches to the completion of a $850 million capital raise, at it looks to pursue new ventures.
It is understood that the capital will be used to fund new platforms in the gambling industry as it looks to really capitalize on the growth of the sector over the next few years.
As a result, it means two new properties - Dreamscape Entertainment Properties and Dreamscape Entertainment Integrated Resorts will be created, with development set to get underway in the coming months.
Ambitious Growth Plans
Undoubtedly, the level of investment raised obviously underlines the strength of the company’s ambition and desire to really penetrate what is becoming one of the biggest growth industries in 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,
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.
In theory, the company will form a trust for the properties, which will own buildings in the gambling and hospitality sector, with numerous markets identified for growth over the next few years.
The funding for such a venture came from a number of sources, with Wells Fargo leading the debt syndicate and Raymond James, which took care of private equity.
Duane Bouligny, Managing Director in Wells Fargo’s Corporate & Investment Bank, stated: “The previous year introduced unexpected and incredibly challenging financial market conditions for gaming and real estate development issuers.
“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.”
In addition, a portion of the fund allocation will be dedicated to one of Dreamscape’s Las Vegas properties, which it acquired from Caesars in 2019 as part of a lease-back arrangement, with modernization understood to be a priority.
Dreamscape to Make a Name for Itself?
Such a level of investment indicates that the company certainly is serious about its intentions in this industry. However, there is already a significant amount of competition.
If it can be smart and identify markets with growth potential over the next couple of years, it could well challenge the major real estate firms that specialize in the casino industry. While New York may well be seen as ambitious, the fact is that the company is based there and will likely have multiple contacts across the city.
Casino resorts appear to be making a comeback, especially over the last six months, as they look to go toe-to-toe with the ever-expanding online gambling industry over the next year, while there is a significant amount of plans in place for new casino resorts right across the country.