Brookfield affiliate wins Revel casino auction with $110M bid

Battle is brewing as runner-up Glenn Straub challenges the auction's transparency

Revel Casino in Atlantic City
Revel Casino in Atlantic City

Atlantic City’s Revel Casino Hotel confirmed today that an affiliate of Toronto-based Brookfield Asset Management won an auction to acquire the property and its assets for $110 million.

The company’s real estate management arm, Brookfield U.S. Holdings, topped the $90 million benchmark bid by Florida real estate investor Glenn Straub, as reports had previously indicated. “Revel is a brand new trophy asset on the beachfront, which we are acquiring at a substantial discount to replacement cost,” Andrew Willis, a Brookfield spokesperson, told Bloomberg News via email.

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Straub is next in line with a $95.4 million backup bid if Brookfield is unable to close the deal, Reuters reported. Prior to the announcement, Straub told the news service he would challenge the results on grounds that the process was not transparent.

The casino cost $2.4 billion to build and filed for its second bankruptcy in June before closing in September, according to Reuters. [Bloomberg News] and [Reuters]Tom DiChristopher