Seeking Alpha

Deutsche sells Cosmopolitan to Blackstone

  • Deutsche Bank (DB -1.3%) closes the book on a painful episode, agreeing to sell Cosmopolitan in Las Vegas to Blackstone (BX -2.5%) for $1.73B in cash. The bank became the proud owner of the resort in 2008 after foreclosing on developer Bruce Eichner, and has tried to make a go of it ever since (all the while having a For Sale sign up). It's never turned a profit and Deutsche's investment in the property sums to $4B.
  • For Blackstone, the deal represents its first big gaming investment.
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Comments (1)
  • psychological-dividends
    , contributor
    Comments (816) | Send Message
     
    See, this is fascinating to me. Asset managers are moving into gambling. Goldman Sachs has a large ownership interest in LVH and the Stratosphere.
    Now Blackstone and the Cosmopolitan.

     

    Gambling is good for shareholders. No question.

     

    I love studying this business.
    15 May 2014, 12:55 PM Reply Like
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