Holding Company of Carl Icahn, Atlantic City Casino owner, announced on Tuesday that Icahn is reportedly selling his unfinished casino property ‘Fontainebleau’.
Icahn Enterprises L.P will sell the Las Vegas Strip property for $600 million, which the company acquired from bankruptcy for $148 million in 2010, to the investment groups The Witkoff Group LLC and New Valley LLC.
The investing companies are happy with the deal and called it “a significantly undervalued resort hotel.” They added the casino costed significantly lesser than building a new casino in Las Vegas casino from the ground up.
Icahn called the property “Icahn Enterprise’s hidden gems," at the sale of the Fontainebleau; he further added that he acquired the asset when no one else was willing to invest, adding more than $450 million to his company from the sale.
The casino project started in 2005 and the construction started in February 2007, which came to a halt following the slash in gaming revenues for Las Vegas, owing to the Great Recession. The project would require another $1.2 billion to finish.