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Drew Hotel Project Defaults on loans - Project halted

Discussion in 'Casino Industry & Development' started by VegasBJ, Jun 3, 2020.

  1. VegasBJ

    VegasBJ VIP Whale

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    don't know if this has been posted yet, but the developer for the Drew Hotel has recently defaulted on principal and interest payments on $2 billion in loans secured to finish the property.

    "
    Business Korea reported this week that a group of South Korean investors — which includes the Hyundai Motor Group and the country’s state-owned casino, Kwangon Land — had not received principal or interest payments on investments totalling $490 million and were getting jittery.

    The Witkoff Group halted construction on the $3 billion hotel-casino resort in March as the coronavirus pandemic triggered the widespread shutdown of the gaming and hospitality industries. By mid-April, there were unconfirmed rumors, first reported by Vital Vegas, that “consultants have been told Drew project is discontinued” and that “financing never happened.”

    "
    The default likely came as the project experienced a setback when construction was paused in March due to the COVID-19 pandemic. The Witkoff Group-owned building secured $2 billion in loans at the start of the year to fund further construction costs of turning an abandoned building into a casino.

    More than half of the funding came from major American investment banks, and the rest came from South Korean investment firms Mirae and NH Investments & Securities."

    https://www.casino.org/news/drew-las-vegas-developer-witkoff-confident-of-completing-project/

    https://www.cardplayer.com/poker-news/24995-real-estate-developer-defaults-on-loan-for-construction-of-newest-las-vegas-strip-casino
     
  2. alanleroy

    alanleroy Click my avatar

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    Maybe Carl Icahn can buy it for pennies on the dollar Then board it up and wait for another sucker to come along in a couple of years and dump it for quadruple profits. Could happen....again..
     
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  3. AllenAndRossi

    AllenAndRossi High-Roller

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    So far, this is the only predictable and unsurprising thing to happen in 2020.
     
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  4. vegasdev

    vegasdev VIP Whale

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    If someone takes on the project again, I have a new name for it.
    Nine Lives Casino.
     
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  5. Sonya

    Sonya Queen of VMB

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    Here's another article I was going to post today:

    https://www.cdcgamingreports.com/coronavirus-stalls-drew-las-vegas-project-but-developers-remain-committed/

     
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  6. Sonya

    Sonya Queen of VMB

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    https://www.reviewjournal.com/business/casinos-gaming/contractors-say-theyre-owed-36m-for-work-done-at-drew-las-vegas-2054203/

    Three months after coronavirus turmoil shut off construction of the Drew Las Vegas, contractors have levied more than $36 million in claims for unpaid bills.

    The lead construction team on the north Strip hotel-casino project filed paperwork Monday claiming nearly $18 million in unpaid work. Several other firms, including architecture, demolition and scaffolding contractors, have filed liens since late April as well, claiming they’re owed money for work at the Drew, Clark County records show.

    Overall, contractors had filed more than $36.5 million in outstanding liens over the Drew as of Monday.
     
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  7. pirviii

    pirviii Low-Roller

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    By the time anything opens in this spot, I will be taking my grandson. He's not yet two, so I'm concerned he'll be ready to go before something opens.
     
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  8. donfairplay

    donfairplay High-Roller

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    The ending of Casino [spoiler alert] when Robert Deniro explains that junk bonds built the pyramids still rings true to this day. [/is it still a spoiler if everyone on this board has seen the movie?]
     
    Last edited: Jul 5, 2020
  9. HoyaHeel

    HoyaHeel Grammar Police & Admin

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    I've never seen Casino. Or Leaving Las Vegas. Or probably a bunch of others. But if a movie/show is out more than a month, I can't reasonably expect spoilers to be kept - it's on me at that point ;-)