Quick flip for billionaire Carl Icahn
Billionaire Carl Icahn, who bought the struggling Trump Taj Mahal land casino in Atlantic City amid litigation and union fights last year has done a quick flip on the asset, selling it on after just four months to the Hard Rock International group and two New Jersey investors for an undisclosed consideration.
Jim Allen, chairman of Hard Rock International, said in a statement Wednesday:
"We are excited to be part of this revitalization of Atlantic City, creating thousands of jobs to help local employment. We are 100 percent convinced Hard Rock Hotel and Casino Atlantic City will be a success."
Allen revealed that the company plans to invest $300 million in renovating and rebranding the property.
Icahn claimed in January this year that he has lost around $300 million through the Taj Mahal acquisition last year, and would be relieved if he could sell it for half that amount.
On Wednesday night Icahn said in his own statement that after considerable analysis and deliberation he had determined that he only wanted to own one operating casino property in Atlantic City.
"A sale of the Taj Mahal therefore represents the optimal outcome for us. We wish Hard Rock and its partners the best of luck with the Taj Mahal."
Icahn emphasised that the deal does not include Trump Plaza Casino and Hotel, shuttered in 2014, on which he still has "for sale" signs.
Hard Rock originally had plans to build a major casino resort in northern New Jersey at the Meadowlands racetrack in partnership with its owner Jeff Gural. However NJ voters overwhelmingly rejected a state-wide referendum last November that would have authorised casino gambling to expand beyond Atlantic City, and the issue cannot be revisited for at least two years.
On the Taj Mahal deal, Hard Rock is accompanied by investors Joseph Jingoli, who is working on a new campus for Stockton University in Atlantic City, and Jack Morris, CEO of Edgewood Properties.
Online Casino News Courtesy of Infopowa
