Brookfield abandons plan to buy Atlantic City's Revel Casino

Wed Nov 19, 2014 8:40pm EST
 
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By Sneha Banerjee and Narottam Medhora

Nov 19 (Reuters) - Brookfield Asset Management Inc said on Wednesday that it was abandoning an earlier offer to buy the shuttered Revel Casino Hotel in Atlantic City, New Jersey.

The deal fell apart due to bondholders of ACR Energy Partners LLC and South Jersey Industries refusing to negotiate the costs related to a $36 million dollar energy provision agreement, according to a Revel source close to the sale negotiations who asked for anonymity.

The resort is powered by the Inlet District Energy Center, which is operated by utility provider Energenic, a joint venture between Marina Energy and DCO Energy.

Brookfield earlier planned to buy the casino for $110 million through its affiliate Brookfield Property Partners LP .

The news was first reported by The Press of Atlantic City, a local news outlet. (bit.ly/1vqNhIr)

Glenn Straub, a Florida developer who was outbid by Brookfield in the earlier auction process, said his interest in the property remained high, according to the report.

Revel, built at a cost of $2.4 billion and opened in April 2012, just as the city's fortunes were going into steep decline, has been hurt as new gaming options in nearby Pennsylvania and Delaware siphon away visitors.

Revel's June bankruptcy filing was its second since it opened. (Editing by Bernard Orr)