Fontainebleau Las Vegas $2.9 billion resort is unfazed by credit market. The Strip real estate development keeps its distance from the construction overruns and credit market crunch similar to Crown Las Vegas, Tropicana and Cosmopolitan Las Vegas condos.
The development has an expected 2009 opening and completely financed.
Condos for sale in Fontainebleau are expected to commence this September. The marketing and promotion of these 1,018 luxury condominiums better be strong or the credit crunch market could take them down the path of its neighbors on the Las Vegas Strip.
Fontainebleau Las Vegas expects to raise approximately $800 million in condominium presales. If the presales are achieved Fontainebleau Resorts will have to raise more equity.
The Las Vegas resort will employee 6,000 people.
Fontainebleau Resorts has contributed approximately $474 million in equity. Debt financing through several lenders include Deutsche Bank, Bank of America, Barclays, Merrill Lynch, Royal Bank of Scotland, JP Morgan Chase, Lehman Bros., Sumitomo Mitsui Banking Corp. and Bank of Scotland. It has announced $4 billion in secured financing for both the Miami expansion and the Las Vegas real estate. Jeffrey Soffer, Miami based real estate developer, controls Fontainbleau Resorts.
Billionaire James Packer, controller of Australian based gaming company Crown Ltd, purchased 19.6 percent for $250 million in Fontainebleau Resorts.
Melbourne, Australia-based gaming company Crown Ltd., which billionaire James Packer controls, contributed $250 million in April 2007 for a 19.6 percent stake in Fontainebleau Resorts.
If Crown Las Vegas will ever be constructed, Fontainebleau will be the tallest hotel on the Las Vegas Strip at 63 floors. When completed, the Las Vegas NV hotel condo will contain 2,871 rooms inside a 730 foot hotel tower. The topping off is expected for October 25, 2008.
Fontanebleau Las Vegas $2.9 billion resort unfazed by credit market.