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Nov. 03, 2009
Copyright © Las Vegas Review-Journal

Deutsche Bank affiliate files for casino license as Cosmopolitan owner

By ARNOLD M. KNIGHTLY
LAS VEGAS REVIEW-JOURNAL

An affiliate of Deutsche Bank has filed for a casino license as the 100 percent owner of the Cosmopolitan, the Gaming Control Board confirmed Tuesday.

Deutsche Bank, however, declined to comment on the application, which was filed last month. The bank would not comment on whether it hopes to eventually sell part of the project or if it is still negotiating with third-party companies to operate the hotel or the casino.


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    • An agreement with Hilton Hotels Corp. to operate the property under the Conrad and Hilton brands has been rumored, but the bank has continually refused to confirm that scenario.

    The license application was filed by Nevada VoteCo., a limited-liability company that is 100 percent owner of The Cosmopolitan Resort & Casino.

    The bank bought the project in August 2008, when it was only half finished, for $1 billion in foreclosure after New York developer Bruce Eichner and his partners defaulted on a nearly $760 million construction loan.

    The $3.9 billion, 2,998-room mixed use development is scheduled to open in September 2010 on 8.5 acres between MGM Mirage’s CityCenter and Bellagio properties on Las Vegas Boulevard.

    Deutsche Bank hired New York-based Related Cos. in September 2008 to oversee completion of the resort’s construction.

    In July, Deutsche Bank hired former Caesars Palace general manager John Unwin as the resort’s chief executive officer. The bank also hired a chief financial officer in September.

    Deutsche Bank’s application comes as an agreement has been reached between the bank and perspective condominium buyers to return a portion of deposits on 1,322 units inside the project’s West Tower.

    Disputes about deposits for the 800-unit East Tower, which could represent as much as $112 million in deposits, remain unresolved and could end up in court.

    The bank officials put forward for licensing are: Jeff Baer, Deutsche Bank’s global head of sourcing and corporate real estate; Donna Milrod, Deutsche Bank’s head or regional oversight and strategy; and Jon Vaccaro, Deutsche Bank’s global head of the commercial real estate group.

    The current position of a fourth applicant, Eric Schwartz, could not be verified on Tuesday.

    Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.

    Reporter Tony Illia of the Las Vegas Business Press contributed to this report.

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    cv wrote on November 03, 2009 09:18 PM: put the fertittas in charge and they can run it into the ground also.


    ex gambler wrote on November 03, 2009 08:46 PM: They can then take over Station casinos as well, since they are majority debt holders with Stations.


    one of the owners of the private company that prints federal reserve notes is going to do business in las vegas ? wrote on November 03, 2009 07:07 PM:
    i hope no judges are on the take from the federal reserve already, making this a conflict of interest.


    2zero wrote on November 03, 2009 04:49 PM: "Global Head" is nothing new in Vegas, in fact it is going on right now at the Green Door.


    Henry Kane wrote on November 03, 2009 04:38 PM: That's prospective, not perspective.

    Interesting article though.


    VegasCasinoInfo.com wrote on November 03, 2009 04:13 PM: Ahh 4 more MBA suits with a casino license, just what the Strip needs. Can ANYONE explain to me how the "global head of sourcing and corporate real estate", the "head of regional oversight and strategy" and the "global head of the commercial real estate group" of a foreign bank intends on running a profitable casino in this environment? Have any of these guys even played a hand of blackjack before? Have they met a gambler? My guess is that would be a "negative" on both questions.

    Nice job Deutsche Bank. Based on your phenomenal success as a banker to casinos, I can understand where the belief comes from that you can actually run one! With brilliant moves like this, BK #2 for Cosmo is certainly on the not too distant horizon.


    Ken wrote on November 03, 2009 03:05 PM: I hope the Germans find someone to run the property. Otherwise the headliners may be Kraftwerk, Nena and Falco.