The Real Deal New York

Brookfield affiliate edges out competition in Revel casino bid

Top offer comes as dispute reportedly simmers between Revel and bidder Glenn Straub

September 30, 2014 04:45PM

Revel Casino Hotel in Atlantic City

Revel casino hotel in Atlantic City, N.J.

A Brookfield Asset Management affiliate, the frontrunner earlier today in an auction for the bankrupt Revel casino hotel in Atlantic City, has been edged back out, according to Reuters.

Florida-based developer Glen Straub topped a previous high bid of $94 million came as an auction that paused last week — due to the Rosh Hashanah holiday — was resumed this afternoon, the Wall Street Journal reported.

Straub had previously submitted a $90 million all-cash offer, which the Brookfield affiliate, which also owns Hard Rock Hotel and Casino in Las Vegas, initially entered the bidding by topping. Other bidders include a member of the Meruelo family, which attempted but failed to buy the Trump Plaza casino in Atlantic City last year, and another New Jersey real estate developer, a source close to the auction told the Journal.

The auction has reportedly been conducted with great secrecy and has more recently become bogged down in a dispute between Revel and Straub, which could lead to additional litigation, the Journal reported.

“Any degree of confidence in [Revel’s lawyers’] ability to conduct a fair auction is nonexistent,” lawyers for Straub said in court papers cited by the Journal.

Meanwhile, John Cunningham, a lawyer representing Revel, told the newspaper that allegations of unfairness are a “baseless objection.” [Reuters] and [WSJ]Julie Strickland

  • Payattention

    More than an hour before you published this Staub placed a counter offer of 95M. Get your facts right and stay up to date.

    • Julie

      Thank you for your comment. The story has been updated to more accurately reflect the auction’s current status.

  • ralphpetrillo

    This is almost idiotic to comment on. The state government should buy it , keep the workers actively working, get a few labor concessions, and profit from the investment. If the state buys it for $150 million, gaining about $2 billion since it cost over 2. 4 billion to build, the results could be very positive. Offer $150 million in triple tax exempt bonds, re -open it. Since they filed for bankruptcy they wiped away debt.
    Why pay unemployment instead of getting people back to work and collecting taxes. If sports gambling is legalized they could sell it for $750 million to $1. 5 billion in two to three years. the state would make one billion very fast.

    • patrickswqyze

      If they legalize prostitution and called it a bunny ranch, then add sports gambling and mechanized table games such as at Resorts World, you can reduce labor, have happy customers and make money.

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