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Goldman’s Whitehall fund sells casinos for $850m

The New York investment bank purchased the company for $1.3bn through its 2007-vintage fund.

Goldman Sachs is selling a four-property casino company for $850 million that it purchased for $1.3 billion, the New York-based investment bank said this week.

Public casino operator Golden Entertainment is buying American Casino & Entertainment Properties, which owns three Las Vegas properties and one Nevada casino, from Goldman’s Whitehall Street Global Real Estate Limited Partnership 2007. Whitehall agreed to buy ACEP from its parent company in April 2007 for $1.3 billion, according to a statement at the time.

Golden Entertainment is paying $781 million in cash and four million in shares to Goldman in a deal expected to close by the end of the year. A Goldman spokeswoman declined to comment, but PERE understands the firm plans to sell off the stock over time.

ACEP’s portfolio comprises three off-Strip Las Vegas properties, the most famous of which is the Stratosphere Casino, Hotel & Tower, with its claim to fame as the tallest freestanding observation tower in the US. The company also owns the Aquarius Casino Resort in Laughlin, Nevada. All the properties include a mix of hotel rooms, casinos, restaurants and other amenities. ACEP is expected to produce $413 million in revenue this year, according to Golden.

Whitehall’s 2007-vintage investors include the Seattle Foundation, Agilent Technologies, the Dyson Foundation and the Yellow Chair Foundation, according to PERE data.

Other major investments from the 2007 Whitehall fund included the take-private of Equity Inns in 2007 for $1.3 billion in cash. In 2015, Whitehall sold the company to a real estate investment trust for $1.8 billion.

After the ACEP sale, expected to close later this year, the $4.8 billion, 2007-vintage Whitehall vehicle is understood to have several assets remaining.