Bankrupt Revel Casino Sells At Auction For $US2 Billion Less Than It Cost To Build

A man reads a sign at the Revel Casino Hotel notifying the public about its closure, in Atlantic City, New Jersey September 1, 2014. REUTERS/Tom Mihalek Thomson ReutersA man reads a sign at the Revel Casino Hotel in Atlantic City notifying the public about its closure.

Brookfield Asset Management has won the auction for Atlantic City’s bankrupt Revel Casino Hotel, a source familiar with the situation said.

The company bid $US110 million for the casino complex, topping a $US90 million bid by the Florida real estate developer Glenn Straub, who did not submit a superior bid by 5 a.m. ET, the source said.

Brookfield could not be reached for comment.

Revel Casino, which cost $US2.4 billion to build, opened in 2012 and closed on Sept. 2. It was meant to be a Las Vegas-style resort, but its fine dining, striking design, and entertainment did not catch on in a city that relies on bus tours and buffets.

Revel Casino had agreed to use Straub’s initial bid to set the benchmark for other potential buyers. Straub had said he wanted to create a university at the site to attract the world’s brightest minds to tackle social problems like hunger.

He threatened on Monday to challenge the results if he lost the auction because the process lacked transparency.

Four Atlantic City casinos have closed this year as neighbouring states have embraced gambling to pump up government revenue. The city had 12 casinos at the start of 2014.

The case is In Re: Revel AC Inc., U.S. Bankruptcy Court, District of New Jersey, No. 14-22654.

(Reporting by Tanya Agrawal in Bangalore and Tom Hals in Delaware; Editing by Kirti Pandey)

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This article originally appeared at Reuters. Copyright 2014. Follow Reuters on Twitter.

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