Deutsche Bank sells lossmaking Cosmopolitan casino for $1.7bn
Deutsche Bank has sold the lossmaking Cosmopolitan of Las Vegas casino and resort to private equity giant Blackstone for $1.7bn (£1bn) in cash.
The Cosmopolitan, a two-tower complex located on the Las Vegas Strip, cost more than $4bn to build but has not made a profit since it opened in 2010.
Deutsche took over the property after its developer defaulted on a loan.
But Germany's largest bank said it moved to sell the development because it was not central to its business.
"The bank is committed to reducing its non-core legacy positions in a capital-efficient manner which benefits shareholders," Pius Sprenger, Deutsche's head of non-core operations said in a statement.
Blackstone beat at least two other bidders for the Cosmopolitan, which is 52-stories high with nearly 3,000 rooms and has a prime location on the Las Vegas Strip.
The Cosmopolitan has lost about $100m annually for the past four years, which was largely due to a wider slowdown in Las Vegas.
The US gambling capital has struggled to recover from the 2008 financial crisis, which saw a sharp drop in revenues for many of its casinos as people reined back on spending.
Nevada was also one of the hardest-hit states by the sub-prime mortgage crisis, with property prices plunging by more than 50%.
However, business has since picked up in Las Vegas, with visitor arrivals, hotel room rates and spending on the rise.