Billionaire activist investor Carl Icahn’s Icahn Enterprises L.P. sold the Fontainebleau Las Vegas resort project to a group led by New York developer Steve Witkoff’s The Witkoff Group LLC and New Valley LLC for $600 million.
The $3 billion casino located at 2755 South Las Vegas Boulevard, was purchased in 2010 for $148 million after the developer ran out of money and filed for bankruptcy during construction.
The 68 story condo/hotel will feature 3,889 rooms and sits on a 27-acre site on the north end of the Las Vegas Strip. Icahn, who has been trying to unload the asset for over two years, called the resort one of his company’s hidden gems.
Carl Icahn stated: “We are pleased to announce the sale of the Fontainebleau, which was one of Icahn Enterprise’s hidden gems carried at $143 million on our balance sheet and in our statement of indicative net asset value as of June 30, 2017. IEP acquired this asset when others were unwilling to invest, and the sale has resulted in a gain of approximately $457 million for our unit holders. This successful investment is an example of our “contrarian” modus operandi, which seeks to invest in undervalued assets and businesses, nurture, guide and improve their condition and operations, and ultimately sell them for large gains. This is our second significant transaction this year, as we previously disclosed the sale of American Railcar Leasing LLC in June, which resulted in a gain of approximately $1.521 billion for our unit holders.”
Icahn Enterprises L.P., is a diversified holding company engaged in ten primary business segments: Investment, Automotive, Energy, Metals, Railcar, Gaming, Mining, Food Packaging, Real Estate and Home Fashion.