A federal judge has approved the sale of the closed Revel Casino Hotel to Florida-based real estate developer Glenn Straub.
Chief U.S. Bankruptcy Judge Gloria Burns approved $95.4 million sale of the property to the colorful businessman's company, Polo North Country Club Inc during a hearing in Camden on Monday.
It would mark the second time Burns has approved a sale of the property, which cost $2.4 billion to build and closed in September after less than three years in operation.
A deal to sell the property for $110 million to Brookfield US Holdings, which was declared the winner of a September auction, collapsed last month. Brookfield said it aborted the sale because of a burdensome financing arrangement connected to Revel’s power plant.
Polo North never would have upped its original offer - $90 million - if it knew the auction would be opaquely run and marred by conflict of interest, the company said in a court filing late last month. It also said it deserves a $3 million “breakup fee” — a consolation prize it was set to receive if the property was sold elsewhere.
Burns denied Polo North the break-up fee.
The fee, designed to award the company for making an opening offer on Revel that spurred other bidding, should be applied as a discount to the $90 million price tag, Polo North says.
This is a developing story. Return for details.