Deutsche Bank has problems with their casino development
Posted by Carl Barnett on 08 Feb 2010 at 11:02
Deutsche Bank have hit problems with their management of a Las Vegas casino complex, which is behind schedule as regards the opening.
Deutsche Bank have ownership of the Cosmopolitan resort on the Las Vegas strip, which they received after foreclosure of the project meant that it left the hands of the developer and was given to the bank.
The project is now two years behind schedule, and has a reported debt attached to it of $2 billion plus, with the number of problems involved showing no signs of abating.
The bank has had to write off hundreds of millions of pounds that were attached to the project, and some of the prospective buyers of apartments included in the Cosmopolitan being offered three-quarters of their initial deposit back.
The project includes a development that covers 8.5 acres, two imposing 600 feet towers and a 75,000 square foot casino.
The initial plan had it ready for opening last year, but that has now been put back to September 2010.
Deutsche Bank could have released the project to another organisation, but took it on, promising a 'world-class facility that will benefit the local economy, create jobs and give an attractive, long-term return.'
Income from gambling on the strip was down 11 per cent last year, and gambling as a whole is suffering, with online gambling currently under the spotlight prior to substantial regulatory moves.
