Deutsche Bank still seeks partners for Vegas resort – ISA-GUIDE.de

Deutsche Bank still seeks partners for Vegas resort

Los Angeles (Reuters) – Deutsche Bank AG, senior lender to the partially built Cosmopolitan Resort & Casino in Las Vegas, continues to seek partners to operate the 3,000-room resort as it carries out foreclosure proceedings, a spokesman said on Thursday.

„We are looking for partners,“ said bank spokeswoman Ted Meyer.

Deutsche Bank began the foreclosure process in January after developer 3700 Associates LLC, led by Chief Executive Ian Bruce Eichner, defaulted on a USD 760 million construction loan for the condominium-hotel project.

General contractor Perini Building Co, a unit of Perini Corp, reached an agreement at that time under which the bank has continued to fund construction work.

Meyer said the USD 3.5 billion resort is still scheduled to open late next year and the foreclosure process is expected to become final later this month.

Potential operators include Global Hyatt Corp, which has invested in the project and still lists the resort on its Web site as „Grand Hyatt Las Vegas at the Cosmopolitan Resort and Casino.“

Officials at Hyatt did not respond to requests for an update on the company’s role.

Hotel operators Hilton Corp and Starwood Hotels & Resorts Worldwide, along with various commercial real estate developers, have also reportedly talked with Deutsche Bank about partnering opportunities.

The Cosmopolitan is located on the western side of the Las Vegas Strip between CityCenter, the USD 9.1 billion mixed-use development being built by MGM Mirage, and MGM‘s Bellagio resort.

A spokeswoman for the MGM declined to comment on whether the casino operator is exploring any participation with the project, citing company policy.

A spokesman for Marathon Asset Management, another of the project’s original lenders, said there has been no change in the status of the Cosmopolitan.