Deutsche Bank is in talks with potential buyers of its Cosmopolitan resort in Las Vegas as it tries to end a six-year, money-losing venture into casino development, people with knowledge of the matter said.
Bloomberg reports that the bank is seeking more than $2bn and has attracted at least four possible bidders, said one of the people, who asked not to be identified because the information isn’t public.
Two others said it may be valued closer to $1.5bn. Deutsche Bank foreclosed on the property after developer Ian Bruce Eichner defaulted on a construction loan in January 2008, and has labeled it a temporary investment.
Parting with the Cosmopolitan now could make the best of an unprofitable situation. Because business has been improving - the resort’s revenue rose 9.6% to a record $653m last year - the property could fetch more than at any time since it opened in December 2010. The two-tower complex that opens onto the Las Vegas Strip cost more than $3.9bn to build and has never turned a profit.
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