Business

Brookfield wins bidding for closed Atlantic City casino Revel

Toronto-based Brookfield Asset Management has won an auction for bankrupt Revel Casino in New Jersey with a bid of $110 million.

Atlantic City hit by multiple casino closures in 2014

In this Monday, Sept. 1, 2014 file photograph, the closing Revel Casino Hotel, right, is seen next to the already closed Showboat Casino Hotel in Atlantic City, N.J. When the $2.4 billion Revel Casino Hotel on the Atlantic City Boardwalk, closed, it was the most spectacular and costly failure in Atlantic City's 36-year history of casino gambling. (Mel Evans/The Associated Press)

Toronto-based Brookfield Asset Management has won an auction for bankrupt Revel Casino in New Jersey with a bid of $110 million US.

The auction was extended into its third day on Wednesday, past an initial deadline of Monday, when Brookfield was revealed as having submitted the winning bid.

With $200 billion US in assets under management, Brookfield owns the Hard Rock Hotel & Casino in Las Vegas and the Atlantis Paradise Island in the Bahamas.

"Revel is a brand new trophy asset on the beachfront, which we are acquiring at a substantial discount to replacement cost," Brookfield spokesman Andy Willis said. "We’re not currently in a position to discuss the business plan as we continue to explore various options [but] we will be in discussions with all parties and partners involved to formulate a feasible plan that ensures the long term viability of this property as a resort destination."

Brookfield was one of many companies trying to buy the casino, which cost $2.4 billion to build, for pennies on the dollar. Brookfield sweetened its original offer of $98 million in order to get the deal done.

Revel closed on Sept. 2 after just over two years of operation, and about seven months after Baltimore Ravens running back Ray Rice was caught on one of its elevator security cameras punching and dragging his then fiancée, an incident that has rocked the NFL.

Revel is one of four Atlantic City casinos to shut down so far this year as the seaside gambling market continues to crumble. A fifth casino, the Trump Taj Mahal, may close on Nov. 13. So far, 8,000 casino workers here have lost their jobs.

With files from The Associated Press

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