Despite the fact that several investors expressed interest in acquiring the shuttered Revel Casino, there is a chance the property to be purchased by the most evident investor – Glenn Straub. The acquisition of Revel has been among his top priorities for quite some time.
However, it became clear that the deal, amounting $82 million, has certain escape clauses, which make it possible for both parties – seller and purchaser, to walk out of the deal, which has to be inked no later than the end of the month.
According to people familiar with the matter, the sale agreement between Polo North Country Club and Revel includes a clause that allows them to terminate the deal if another investor proposes a higher bid before the closing date, March 31st.
Actually, the above-mentioned clause is really important as the California investor Izek Shomof announced his interest in buying the shuttered casino. Mr. Shomof made a tour around the property last week and a court hearing related to the sale of Revel is scheduled for this Thursday.
Last week, Judge Gloria Burns postponed the announcement of her final decision with the aim of giving Mr. Shomof and other potential buyers some more time for preparing their bids.
The partner of Mr. Shomof revealed that they are about to submit a formal bid within the next few days and if their company, DTLA Development, eventually acquires Revel, the current tenants will not be supposed to discontinue their operation.
Those who keep themselves informed about the issues related to Revel’s sale, know that this is the third time when the shuttered casino will be put up for sale and the above-mentioned tenants as well as the expensive maintenance of the power plant were the main reasons for the previous deals to fall through.
The property was supposed to be acquired by Glenn Straub in the beginning of February but the deal faced several setbacks. Anyway, a deal for $82 million was signed last month but it is important to note that Mr. Straub has the opportunity to terminate it if ACR Energy Partners stops providing its services before the deal closes.
Meanwhile, new investors expressed keen interest in placing a bid. A representative of Moelis & Co, the company that deals with expressions of interest in Revel, announced that the sale has been discussed with 250 investors and 46 of them visited the property over the last one and a half year.
