AC: Revel finally sold for $110 million
Sold for $110 million
On Wednesday 1st October the auction of the Revel Hotel and Casino was finally concluded with the winning bid of $110 million going to a Canadian asset management firm called Brookfield Holdings.
In the end there were only two interested parties for the Revel that cost $2.4 billion to build only two and half years ago, the stalking horse bid of Glenn Straub for $90 million and that of Brookfield’s.
The Canadian company that won the bidding process at the court auction said it plans to re-open the Revel as a casino once more.
Mayor Don Guardian said, “These are the first people that realized what I’ve been saying about Atlantic City turning the corner and being a great investment due to the low prices, “we’ve had a lot of bad news. This is certainly some good news.”
However maybe not all is settled with Glenn Straub and his legal team considering whether or not to appeal the bidding process, following what the millionaire says was an-unfair process.
Industry observers have questioned the suitability of Brookfield Management who already own a casino in the Bahamas and the Las Vegas based Hard Rock Casino, which in August failed to make an interest payment on the $1 billion debt they have attached to the property. The management said it was working with lenders to come to an arrangement on the payments.
Brookfield spokesman Andrew Willis said,”Revel is a brand-new trophy asset on the beachfront, which we are acquiring at a substantial discount to replacement cost,” Willis said. “We are excited about owning the newest and highest quality asset in Atlantic City at such an attractive basis.”
Details on the future of the Revel and indeed if it will be called the Revel again are un-clear, with no date specified for re-opening and exactly what the new Revel will be and look like.
