Brookfield Backs out of Revel Deal
Brookfield Asset Management Inc, the Toronto based firm, has backed out of the deal to purchase the bankrupt Revel casino in Atlantic City after being confronted with a $36 million annual utility bill and being unable to successfully negotiate a reduction in payments.
Brookfield announced the cancellation of the purchase via a brief statement saying it had “terminated the Revel acquisition”.
The asset management company had made plans to purchase the casino for $110 million, outbidding Florida based property developer Glenn Straub who attempted to invalidate the sale, saying Brookfield lawyers had a conflict of interest.
The company had made plans to reopen the Revel as a casino-hotel but did not provide any details as to when it would happen. Brookfield also owns and operates the Atlantis Resort in the Bahamas as well as the Hard Rock Hotel and Casino in Las Vegas.
Revel’s Alternative Buyer
Brookfield’s withdrawal could pave the way for Glenn Straub, the Florida property developer, to acquire the former casino. Straub was the first person to bid on the bankrupt casino but was eventually outbid by Brookfield, who he took to court in an attempt to invalidate the sale. The attorney for Glenn Straub, Stuary Moskovitz, has said that he has three options he could pursue if he chose to purchase the Revel. Firstly, Straub could pursue his appeal to invalidate the court-approved sale which would see him receive the property for $90 million.
The second option is for Straub to drop his appeal and pay $95 million, the final amount Straub bid before losing to Brookfield’s $110 million bid.
Finally, Straub could choose to walk away from the deal completely leaving the bankrupt casino ownerless.
“All three are viable options,” Moskovitz commented when talking to press, but added he had not spoken to Straub yet and probably wouldn’t until Thursday.
Straub’s Plans for the Revel
There have been several options for the revamping of the Revel and Straub has been very vocal of his plans to stay away from reopening the Revel as a casino. Among viable alternatives, Straub has revealed plans to transform the casino into a “Genius Academy” where the planet’s best and brightest would gather to tackle humanity’s most pressing problems.
Straub also spoke about plans for a second tower, a high speed ferry to transport people directly to and from Manhattan, “Super Jumbo Jets” to fly in Arabian businessmen and even a ski resort complete with elevator-equipped artificial mountains.
Despite Brookfield puling out of the deal, Atlantic City Mayor, Don Guardian is remaining relentlessly optimistic on the whole affair as well as the future of Atlantic City in general.
“I am sorry to hear that the Brookfield Transaction was not completed,” he said to press. “Although Brookfield would have been a good fit for Atlantic City, we will continue to attract new investors. Atlantic City is a resilient city, and better days are still ahead of us.”
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