Dreamscape Companies Completes $850M Capital Raise

NEW YORK, Feb. 15, 2023 /PRNewswire/ -- Dreamscape Companies, a New York-based real estate development and investment firm founded by industry veteran Eric Birnbaum, today announces it has successfully completed an $850 million capital raise. The funding was managed by financial institutions Wells Fargo, which led the debt syndicate, and Raymond James, which led the equity private placement. The capital raised will launch two independent Dreamscape platforms: Dreamscape Entertainment Properties, Inc, an experiential real estate investment trust that will own gaming, hospitality and entertainment assets, and Dreamscape Entertainment Integrated Resorts, Inc, 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 U.S.

"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."

"Through Eric's leadership and the unwavering dedication of his talented, best-in-class team, Dreamscape is perfectly positioned to continue its current trajectory and achieve its expansion goals," said Steven Loffman, Managing Director at Raymond James. "Dreamscape has a unique ability to thoughtfully acquire and then execute with a style that consistently speaks to its targeted customer. The company has significantly increased its already robust portfolio and will continue to do so with this latest round of funding."

Lifestyle-oriented real estate and hospitality sit at the core of Dreamscape's ethos. These newly capitalized platforms, coupled with the upcoming renovation of the Rio, will provide Dreamscape with a unique foundation to scale within the entertainment and gaming sectors. The company already has a broad presence and geographically diverse portfolio, owning and operating assets in Nashville, Miami, New York City, Los Angeles, Phoenix, New Orleans, Charleston and Philadelphia.

About Dreamscape

Dreamscape's talented team of real estate professionals has collectively deployed in excess of $35 billion across residential, retail, hospitality, entertainment and gaming properties and has decades of experience in these verticals. Eric Birnbaum and his team have assets in New York, Miami, Phoenix, Los Angeles, Nashville, New Orleans, Charleston and Philadelphia. The team has worked on a diverse portfolio of significant properties, including critically acclaimed endeavors such as Henry Hall in New York's Hudson Yards, The Pod Hotel in New York's Times Square, The Goodtime Hotel in South Beach, Miami, Rio Hotel & Casino in Las Vegas, and 5420 Sunset Boulevard in Hollywood, Los Angeles.

SOURCE Dreamscape Companies

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