First, Trump Plaza was and is for sale in Atlantic City and then Atlantic Club Casino was up for sale and now Revel is up for sale to the highest bidder.
The hedge funds that this winter repossessed the bankrupt $2.5 billion Revel casino will, in a few weeks, start a formal auction to find a buyer, The Post has learned.
Early conversations indicate that their asking price — a more than $600 million valuation for a resort not yet breaking even — may be too rich for potential suitors.
The hedge funds, which hired Moelis & Co. to handle the sale, are open to selling just a 51 percent stake and keeping the rest, a source familiar with their thinking said.
As I (un)exclusively told you months ago Revel would be sold within 6 months. Well, we’re cutting it close but it looks as if the New York Post was right for a change meaning I wasn’t wrong. HUZZAH!
AC Tripping speculates on who will buy Revel and I tend to agree with their thoughts but I can’t imagine that any one company will pay $600 million for 100% of a casino in Atlantic City just because it’s pretty. I’d look for the company that buys Revel to go after a controlling position but not 100% of Revel. Still, $300 million is a lot to ask for when existing properties generating more revenue are being valued at 10% of that.
An existing Atlantic City casino owner was first rumored to be the buyer but as the climate for gaming in New Jersey has evolved I don’t think that’s likely. Online poker looks as if it will become legal in the near future I’m thinking that the company will have ties to Las Vegas so that they can have a foot in both markets.
Photo: Lehigh Valley Live
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