Morgan Stanley (NYSE: MS) announced that it will be pulling out of Revel casino in Atlantic City, a move that will result in what the company refers to as a “substantial loss” of its $1.2 billion investment in the partially-built property.
The company said in an regulatory filing on Thursday that its board has authorized a “plan of disposal” for Revel Entertainment group, LLC a subsidiary of Morgan Stanley that has been in the process of developing the beachfront casino-hotel on the boardwalk.
“The company will consider various alternatives to effect the full disposition of Revel, which may include a direct sale to a third party or an auction process,” the company said.
The departure of Morgan Stanley from the project comes as Atlantic City faces strong competition from casinos called “slot parlors” in neighboring states. The $2 billion casino was viewed as a project that would bring more tourists and gamblers to the city.
The project has been riddled with challenges since it began in 2007. In January 2009, Revel slowed the construction process on the project to focus solely on developing the exterior and laid off workers in the process.
But the project, which began in 2007, has faced challenges. In January 2009, Revel slowed construction on the project, focusing solely on the exterior, and laid off workers.
