Deutsche Bank sells lossmaking Cosmopolitan casino for $1.7bn

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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.