As reported by Wayne Parry of the Associated Press, the $2.4 billion Revel Casino Hotel on Atlantic City’s boardwalk has been sold at auction early this morning for $110 million.
The winning bid went to the Canadian firm Brookfield US Holdings LLC, an affiliate of Brookfield Asset Management. Spokesperson Andrew Willis confirmed their plans to reopen Revel as a casino hotel. Willis added:
“With our ownership of the Hard Rock in Las Vegas and the Atlantis Paradise Island in Bahamas, we have expertise underwriting and operating these types of multi-faceted assets. We anticipate material synergies between these three high-quality properties.”
Revel auction controversy?
However, there is a bit of controversy as the attorney for runner-up bidder and Florida real estate developer Glenn Straub claims there wasn’t enough time for Straub to formulate a better offer. The problem he had with the $110 million winning bid was Brookfield made the conditional offer Tuesday right before midnight – the condition being it had to be accepted before 6am Wednesday morning or else it would be pulled.
Readers may remember Straub as the outspoken $90 million cash-bidder planning to reopen Revel as a “genius academy” that could potentially also have a casino. If Brookfield fails to close the deal, Straub may still get his wish of an Atlantic City tower of genius.
Another way Straub could proclaim victory is at the bankruptcy court hearing on October 7 at which the sale must be approved. A $3 million “breakup fee” will be paid to Straub for serving as lead bidder if Brookfield officially wins the auction next Tuesday.