Chilean company CB Investments SpA was planning to develop a hotel-casino on the Strip near the Las Vegas Convention Center’s West Hall but has withdrawn from the $120 million deal due to allegedly high mortgage rates.
LVCVA terminated the agreement:
The Chilean company, controlled by South American businessman Claudio Fischer, discussed the purchase of 10 acres at the corner of the Strip and Elvis Presley Boulevard with the Las Vegas Convention and Visitors Authority (LVCVA). The discussions were held on December 15, but the deal has not been closed. According to LVCVA CEO, Steve Hill, “the LVCVA terminated the agreement, received the $7 million non-refundable deposit, and re-listed the property.”
Funding project failed:
The sale of the property that formerly housed a portion of the Riviera Hotel-Casino was announced in October 2021. The LVCVA planned to use the funds from the sale to finance the renovation of four convention center exhibit halls. The convention center includes West Hall, a 1 billion worth property spread over 1.4 million-square-foot that opened in 2021. The center is also the host to North Hall included in the two-year renovation schedule announced by LVCVA CEO. The proceeds of the sale of the 10 acres would have funded the renovation project.
As the deal with CB Investments has been terminated, Hill said that the next week’s LVCVA board meeting will discuss the matter.
Reasons for termination:
CB Investment’s portfolio includes casinos, residential properties, and commercial real estate across South America. Claudio Fischer is in charge of the company and is also a co-founder of Sun Dreams, the largest casino resort operator in Latin America. Sun Dreams owns 19 properties in Chile, Argentina, Panama, Colombia, and Peru.
The source cited the article from a Spanish-language website that covers Latin American gaming news. According to the article, Fischer indicated that the “economic crisis affecting the U.S.” and rising mortgage rates were the reasons why the Chilean company withdrew from the agreement.
Property no longer listed::
The contract was supposed to be signed on December 15 to mark the milestone for the future Sun Dreams hotel-casino building. The construction of the facility was supposed to commence by January 1, 2031. No further details as to the number of rooms or the size of the property were disclosed.
As the deal failed and the project was excluded from the list in the most recent LVCVA Construction Bulletin, these details are no longer relevant. The Sun Dreams hotel-casino project may be considered a dream not come true in the Las Vegas sun – until further notice.
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