The owners of the world renown Atlantis Resort and Casino, Brookfield Asset Management, has completed $1.9 billion in debt refinancing of the resort. Two years after its purchase of the Sol Kerzner empire, Brookfield has accomplished refinancing Atlantis’ debt and is said to have invested about 500 million dollars into the themed hotel and gambling destination.
The Wall Street Journal has reported that a Brookfield Asset Management property fund has reached an agreement for a $1.75 billion credit facility with a lending group. The fund will invest $195 million of equity into Atlantis. According to The Tribune newspaper, this financing will continue over a seven-year fixed rate credit facility raised from an alliance of banks, pension funds and investment funds.
The Canadian based, asset management company is also set to remove Kerzner International as manager of the resort in September and set its newly created Brookfield hotel-management company to run the company. The changes at Atlantis come as a new competitor is preparing to open a few miles away in Nassau. Known as Baha Mar, the $3.5 billion project is being developed with financing from a Chinese government bank. The project will include a giant casino, Grand Hyatt, Rosewood and SLS Hotels, and private residences for sale. Baha Mar’s developers have said they intend to open the resort in December. The mega project is currently the largest project of its kind in the western hemisphere.
Notably, Marriott International Inc., has reached a franchise agreement with Atlantis to become part of Marriott’s Autograph Collection. In his statement to the media, President of Atlantis, George Markantonis, who will continue to run the resort as president of Brookfield Hospitality, said,”We are preparing for new competition and preparing Atlantis for the future”.
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