Revel Sale to Brookfield Officially Axed; Will Backup Bidder Buy?

Photo | Dan McQuade

Everything is lining up for a “university for geniuses” to go into the former Revel casino in Atlantic City. Well, maybe.

A judge approved the termination of the sale of Revel to Brookfield Asset Management this morning, paving the way for Florida developer Glenn Straub to purchase the property with his backup bid of $95 million. Brookfield had bid $110 million.

Straub previously said he wanted to turn the property into a “university for geniuses,” then mused on the idea of demolishing the property if things don’t work out.

The sticking point with Brookfield’s deal was negotiations with energy plants that provide power to Revel. Bondholders refused to alter utility payments, though both companies say they’re willing to negotiate.

Straub said previously he wouldn’t accept the current terms with the power suppliers. A hearing on Revel’s attempt to sell the property to him is scheduled for January 5th.

An attorney for Revel says the company is keeping the developer’s $11 million deposit, saying it is entitled to under the contract.

“They had an outside date to close on Nov. 28,” Revel attorney John Cunningham said of Brookfield. “They pre-emptively went to the press and announced that they were walking away from this transaction. Quite simply, they have affirmatively repudiated the contract.”

Previously: Revel Went Out With an Early-Morning Fire Alarm