With a winning bid of $110 million, Brookfield Property Partners LP of Toronto won the bid for ownership of the shuttered Revel Casino and Hotel in Atlantic City. Brookfield plans to reopen the property as it expands its $200 billion investment portfolio into gambling venues.
Brookfield adds the Revel to its gaming property portfolio which already includes the Hard Rock Hotel and Casino in Las Vegas and the Atlantis in the Bahamas.
The final auction price was more than $2 billion less than it cost to build and while that presents an enormous value for its new owners, they will face many challenges.
The Atlantic City casino industry has hit a major decline in the recent years. Several casinos have already closed their doors. The government has launched online gambling in the State which has to date not really made a significant impact in reviving the ailing industry.
Casino revenue in Atlantic City fell more than 40 percent to about $2.8 billion in 2013 from a peak of more than $5 billion in 2006.
The losing bidder in the auction, Glenn Straub, a Florida-based real-estate developer, plans to contest the sale on the basis that it did not follow court approved rules. A hearing will take place to decide the final outcome.