Blackstone to Buy The Cosmopolitan of Las Vegas

cosmodenizenYesterday, December 3, the Nevada State Gaming Control Board stated that the Blackstone Group may become the new owner of The Cosmopolitan of Las Vegas. The New York-based company is known to be a leader in the provision of a wide range of private equity services, investment managing, and other financial operations.

The Cosmopolitan opened doors on December 15, 2010. It spreads over a 8.7-acre site. Its two 52-story towers are among its most impressive features. It also offers to its visitors and guests a total of 2,995 rooms, a large casino, spa and fitness, a theater, conference, rooms, etc.

The local gaming regulator will discuss the venue’s license at a meeting, which will be held on December 18.

Tyler Henritze, a Senior Managing Director at Blackstone, said at a special hearing with the Control Board, which took place in Carson City, that the property’s potential can be fully revealed and they are perfectly able to achieve this.

In May, 2014, Blackstone Real Estate Partners VIII, one of the Group’s divisions, released a statement that it would purchase The Cosmopolitan from its owner Deutsche Bank. Blackstone was to pay the amount of $1.73 billion.

Reportedly, Blackstone Real Estate Partners VIII owns real estates, located around the world, which are worth around $81 billion. Blackstone’s division owns almost 1,000 properties in Nevada.

In 2013, the Group’s subsidiary Equity Office Partners purchased the so-called Hughes Center, situated at the Flamingo and Paradise roads in Las Vegas, for the amount of $347 million.

As already mentioned, The Cosmopolitan opened doors in 2010. Its construction cost $3.9 billion. The venue became property of Deutsche Bank, since its original developer could not avoid default. The German company completed its construction and launched it. Yet, it has always wanted to sell it.

Cosmopolitan’s luxurious nightclubs and restaurants are its most profitable facilities. But the one that generates the most substantial profits is the so-called Chandelier Bar, which is located within the casino premises and it is about ten meters tall. Blackstone representatives stated that they plan to refurbish certain areas in the casino and to open another restaurant, so as to increase revenue. Its façade might also undergo some changes.

Jonathan Gray, owner of Blackstone, shared that this new undertaking will most probably turn profitable, for different Las Vegas venues, like Genting Berhad’s Resorts World, are still “way off from being built”.

Mr. Gray also said that he was particularly excited about all the opportunities that his company will have with the purchase of The Cosmopolitan. He also shared that they might consider buying some other properties in Southern Nevada.

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