Revel announces winning bidder

Brookfield US Holdings LLC, a Toronto-based firm, has been selected as the successful bidder for the $2.4 billion Revel Casino Hotel, with its bid of $110 million. The casino's first bidder, Glenn Straub under his entity Polo North Country Club Inc., has been selected as the backup bidder, based on its $95.4 million bid.

"We're pretty excited about owning the newest and highest quality asset in Atlantic City as such an attractive basis," said Melissa Coley, spokeswoman for Brookfield. "It's pretty consistent with our history of contrarian investing and value basis."

Brookfield also owns the Hard Rock Hotel & Casino in Las Vegas and the Atlantis Paradise Island in the Bahamas.

The way Brookfield invests is "countercyclical," said Andrew Willis, spokesman for Brookfield. For examples, the company was investing in residential real estate during the financial crisis in 2008 and 2009.

Brookfield is currently investing a significant amount in markets such as Brazil, India and China.

Revel AC Inc., the parent company of Revel Entertainment Group LLC, intends to move forward with a hearing before the U.S. Bankruptcy Court for the District of New Jersey to seek approval of the sale, scheduled on Oct. 7 at 10 a.m.

Brookfield previously placed bids of $94 million and $98 million for the casino that closed on Sept. 2, according to NBC10. It plans to open the facility as a casino, says NBC10.

As a response, Straub initially raised his own bid from $90 million to $95.4 million to top the $94 million bid from Brookfield.

Revel is represented by White & Case LLP and Fox Rothschild LLP. Its financial adviser is Moelis & Co., and its restructuring adviser is Winter Harbor LLC.

Brookfield's is represented by Weil, Gotshal & Manges LLP.

With closures to the Revel, Showboat and Trump Plaza recently, Atlantic City is trying to transform itself into a family resort that has gaming as an added bonus. In fact, it has $1 billion in construction projects in various stages of development.

One of the Revel's largest restaurant providers, Philadelphia-based Garces Group, said it wants to stay in the facility, no matter what it becomes. The $2.4 billion Revel was home to four Garces restaurants: Amada, noodle bar Yuboka, Village Whiskey and the Distrito Cantina/Guapos Tacos food truck mash-up.

Source: Philadelphia Business Journal