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

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