Los Angeles private equity firm Colony Capital llc is leading a three-horse race to acquire the bankrupt Aladdin Hotel & Casino in Las Vegas, according to sources.
Other sources said Aladdin’s investment banker, KPMG llc, will decide on the bid by March 26.
While they couldn’t identify the other bidders for the Aladdin, the sources said Colony Capital’s bid is drawing the most support.
Spokesmen for Colony Capital and Aladdin had no comment. KPMG officials could not be reached.
One real estate broker who requested anonymity said Aladdin could fetch as little as $450 million. The hotel opened in August 2000, at a cost of $1.2 billion.
The Las Vegas Sun, which first reported Togel Colony Capital’s interest March 14, suggested it could be acquired for between $375 million and $500 million.
Any purchase price in that range would likely draw objections from both senior lenders and unsecured creditors. The senior lenders hold about $430 million in bank debt, while the unsecureds are owed about $619 million.
If Colony Capital’s bid succeeds, however, the casino-hotel would become its first big Vegas catch. Run by former Robert Bass associate, Thomas Barrack, Colony owns the Resorts International hotel and casino in Atlantic City.
In addition, Colony would have an advantage in the licensing process given that it once owned a casino-hotel in Lake Tahoe. That property was part of its Harveys Casino Resorts portfolio, which it sold to Harrah’s Entertainment Inc. in 2001 for $675 million.
The Aladdin’s owners, London Clubs International plc and the privately held Sommers Trust, filed for bankruptcy in September.
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