Goldman Sachs casino deal

The Whitehall Real Estate Fund, run by Goldman Sachs & Co, is to buy four casinos from Carl Icahn’s American Real Estate Partners for $1.3 billion.

The deal will see yet another of Wall Street’s powerhouses moving into the gambling industry, following in the footsteps of Morgan Stanley, who bought a casino site in Atlantic City for $74 billion last year.

One of the properties included in the deal is the Stratosphere Casino Hotel & Tower, which is located at the northern end on the Las Vegas Strip and is targeted towards tourists. The deal also includes 11 acres of undeveloped land surrounding the casino.

The other casinos included in the deal are the Arizona Charlie’s Decatur and Arizona Charlie’s Boulder (both off the strip and geared towards Las Vegas residents) and the Aquarius Casino Resort in Laughlin.

However, the deal still needs approval from the Nevada Gaming Commission and the Nevada State Gaming Control Board, which is expected to be confirmed in eight months.

Icahn is set to make a handy return from the sale after revealing that he bought the assets for a relatively small $300,000, marking a gain of about $1 billion.

Editor, - 2007-04-24 11:40:25

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