$1.2BN Trump Taj Mahal Sold for $50MMay 10, 2017 10:44 am
At the time of its opening in Atlantic City twenty-seven years ago, the Trump Taj Mahal was described as the “Eighth Wonder of the World”, with the Boardwalk property costing a massive $1.2 billion to complete, and counted amongst its many facilities what was claimed to be the largest casino in the world.
After struggling during the economic recession of 2008, however, the iconic venue almost fell into bankruptcy, but was rescued in 2014 by business magnate Carl Icahn who agreed to spend around $300 million renovating the property, which also included the price of its purchase. By October 2016, however, a union dispute forced Icahn to sell the Trump Taj Mahal, with the buyer being the Hard Rock chain.
The deal took place in March of this year, with the price of the purchase a mystery until this week when information from the US Securities and Exchange Commission revealed that the casino went for just $50 million, representing a mere 4 cents on the dollar compared to its original construction cost. Commenting on the dramatic fall in its price, Professor David Ambrose from Drexel University, stated:
“Without knowing all the particulars on the surface, it seems fair. The new operators will be putting forward a tremendous amount of money subsequently raising the property value and its new marketing potential.”
According to reports, the Seminole Indian tribe owned Hard Rock International, together with investors from the Morris and Jingoli families, intend to spend at least $375 million improving and rebranding the property, which is expected to open in the summer of 2018. Furthermore, the work being carried out will create 1,000 construction jobs, and a further 3,000 permanent jobs at the Trump Taj Mahal once complete. Hard Rock will subsequently fill the venue with some of its huge collection of music memorabilia, and even lend its guests Fender electric guitars to play while staying in their hotel rooms.