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Deutsche Bank Sells Cosmopolitan Casino & Resort In Las Vegas To Blackstone Group For $1.7 Billion In Cash

 

Blackstone

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On the plus side for the bank, with this transaction Deutsche Bank will be picking up a good deal of cash which will certainly help improve its capital ratios to prepare for Basel III, and for the SEC’s forthcoming toughening of equity requirements for the US subsidiaries of foreign banks as well perhaps.

Or, as Deutsche Bank put it themselves, completely incomprehensibly in their announcement of the deal today, “The sale will have a net positive impact on the Bank’s CRD4 pro-forma fully loaded common equity tier 1 ratio of approximately five basis points upon closing of the transaction.” Sure; just what we all wanted to know. By the way CRD4 stands for “capital requirements directive number 4” of the European Commission in Brusssels.

Pius Sprenger, who is head of the problem loan division for Deutsche Bank said with the announcement, “We are pleased to have agreed to this sale and to have delivered on our commitment, ” also adding, “the Bank is committed to reducing its non-core legacy positions in a capital efficient manner which benefits shareholders.” In polite, but practical, terms that could well mean simply that Blackstone just got one hell of a bargain to finally take it off their hands – at first glance the basic maths looks like 50 cents on the dollar.

With 2, 995 rooms the Cosmopolitan of Las Vegas, is a luxury casino and hotel right on the Las Vegas Strip, located just south of the Bellagio on the west side of Las Vegas Boulevard. The project consists of two high rise towers. As well as the hotel, it comprises a 110, 000 square foot casino, 300, 000 square feet of retail and restaurant space, a 40, 000 square foot spa and fitness facility, an 1, 800 seat theatre and 150, 000 square feet of meeting space. In 2013, the hotel was actually rated “The Best Hotel in the World” by the website “Gogobot.” According to Wikipedia the Cosmopolitan is also home to the Marquee Nightclub and Dayclub, which it claims was the top grossing nightclub in the United States.

 

About Continuum Company

The Cosmopolitan resort was a project developed originally by The Continuum Company, which is a privately held real estate development firm based in New York City. Continuum’s core business is the acquisition and development of residential housing, both for sale and rental, office, hospitality and retail space in New York, Miami, and Las Vegas. The Cosmopolitan project in Las Vegas was originally conceived as a purely residential development, according to The Real Deal, before morphing into a hotel and casino project once it got under way.

 

About Bruce Eichner

Ian Bruce Eichner is the Founder and Chairman of Continuum, and also of the Metropolis Group. He is a seasoned developer of urban mixed-use properties, has a proven track record in real estate spanning more than three decades. His portfolio of projects in New York, Miami and Las Vegas include City Spire, One Broadway Place, The Manhattan Club, The Royale and Montague Street in Brooklyn Heights. Outside of New York he has developed the Continuum, a 2-tower gated condominium community in South Beach, Florida and the Cosmopolitan, the 2, 995 room resort and casino on the Las Vegas strip.

Deutsche Bank Sells Cosmopolitan Casino & Resort in Las Vegas to Blackstone Group for $1.7 Billion in Cash

 

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