In yet another twist of fate for the glass castle of Atlantic City, the defunct Revel Casino was sold at auction Wednesday to Brookfield Asset Management. The Toronto-based company, who also owns the Hard Rock Casino & Hotel in Las Vegas, bought the property for a measley $110 million — chump change compared to the $2.4 billion it took to construct. While Glenn Straub of Polo North Country Club Inc. was garnering all of the publicity with his $90 million-plus bid and talks of a university for "geniuses" — it turned out to be the real casino guys who won the race. Even after all of this hullabaloo, the future of Revel is still not clear cut.
Citing the low purchase price and strong portfolio of casinos, The Inquirer reports that Brookfield is in a good position with Revel, although it still needs to obtain a gambling license. So, Straub could isn't necessarily out of the fold. His last bid was reported to be $95.4M.
With muliple casino closures this summer, it still seems like a risk to invest in Revel at this time. According to the Philadelphia Business Journal, that's apparently how Brookfield rolls:
"The way Brookfield invests is "countercyclical," said Andrew Willis, spokesman for Brookfield. For examples, the company was investing in residential real estate during the financial crisis in 2008 and 2009."
Are you happy to see Revel stay a casino or were you kind of pulling for that whole university for geniuses/high-speed rail line plan from Straub?
· Less debt and list of gamblers are key for new Revel owner [The Inquirer]
· Revel announces winning bidder [PBJ]
· More Revel Coverage [Curbed Philly]