It may have taken longer than Deutsche Bank intended, but it has finally rid itself of the Las Vegas casino it inherited in 2008 when developer Bruce Eichner was forced to abandon the project because of the economic recession. The Cosmopolitan‘s new owners are private equity giant Blackstone, which paid $1.73 billion in cash for the property that opened in December 2010 only to lose $440 million in its first four years.
The transaction has lifted a heavy weight off Deutsche Bank’s shoulders, with its capital ratio expected to rise five basis points upon completion of the transaction. A spokesman for the bank says it made a “small profit” from the sale.
Although Bloackstone owns a part of Caesars, the Cosmopolitan is essentially the firm’s first full venture into casinos. Blackstone’s real estate arm is pretty well-financed with a worth of about $81 billion.
The transaction scuttled rumors that Crown Resorts was looking to buy the Cosmopolitan. The James Packer-led casino operator reportedly offered $2 billion for the complex.
