Brookfield backs out of deal to buy Revel casino

Deal fell apart over high fixed costs the developer would have to pay

Revel Casino in Atlantic City, N.J.
Revel Casino in Atlantic City, N.J.

Brookfield Asset Management has dropped out of a deal to buy Atlantic City’s Revel Casino Hotel for $110 million.

The fixed costs Brookfield would have had to pay, such as electricity and cool water for air-conditioning is what killed the deal, sources told the Philadelphia Inquirer. The sale of the casino was expected to be finalized before the end of the year. Brookfield had said earlier that it planned to reopen Revel as a casino.

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The $2.4 billion hotel and casino closed in early September, causing more than 3,000 people to lose their jobs.

The Toronto-based development company stands to lose a $10 million deposit if the deal indeed falls through. [Philadelphia Inquirer] — Claire Moses