Here’s Unusually Huge Property Takeovers at Big Hotels and Casinos
Leonard Green & Partners LP and TPG Capital announced Tuesday that they will become partners in the Palms, with current Palms owner George Maloof claiming the deal will significantly reduce the property’s debt . The Palms was backed by a $400 million revolving credit agreement due last October that wasn’t refinanced. No news on whether the firm will be taking majority ownership of the Palms, and the deal still awaits approval from the Nevada Gaming Control Board.
In other news, the Royal Bank of Scotland (NYSE:RBS) has taken control of 42 Marriott (NYSE:MAR) hotels around Great Britain after the bank failed to secure debt-for-equity restructuring for the properties. RBS appointed Ernst & Young as receivers of the 1 billion pound ($1.64 billion) portfolio, one of the largest single property receiverships in the bank’s debt book to date.