NEW YORK (
recorded a $932 million loss from its stake in Atlantic City's Revel casino.
The Wall Street firm, which announced earlier this month that it would fold the project, booked the loss in its first quarter, reported on Wednesday. Morgan Stanley said it would put the half-developed property up for sale. It had already invested $1.2 billion in the project, which was slated to cost a total $2.6 billion.
The opening of Revel had been postponed last year until 2011 after financing ran out.
Revel represented one of the last hopes for the rebound of Atlantic City's casino industry, which has struggled amid a slump in consumer spending and the expansion of nearby gaming markets. As a result, investment dollars have been fleeing the New Jersey gambling hub.
said earlier in the year that it planned to divest its 50% stake in the Borgata. MGM decided to part ways with Atlantic City after New Jersey Regulators deemed its Macau business partner, Pansy Ho, unsuitable, due to allegations of links to Chinese organized crime.
As MGM prepares for an initial public offering of its Macau assets, slated for the third quarter, and as the Chinese gambling enclave continues to see massive growth, it would only make sense for MGM to choose Macau over Atlantic City.
also announced in February that it would forsake plans to build a $1.8 billion casino on the Boardwalk. It subsequently put its 19 acres of land, formerly the site of the
Atlantic City, up for sale.
Pinnacle purchased the property in 2006 from
for $270 million. It demolished the Sands, but halted development of a successor casino in 2008 because of problems accessing financing.
--Reported by Jeanine Poggi in New York.
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