The Canadian corporation acquires the majority equity stake in the Tropicana Las Vegas Hotel & Casino.
The firms real estate fund closed with 3.1 billion in capital, following James on the sidelines investment thesis.
The move to dump its sports assets comes as other teams are weighing sales, diluting stakesor, possibly, going bankrupt.
The Atlantic City casino will be sold for a minimum of $200 million, although bidders are expected to clamor.
The Chicago-based private equity firm brings on Morgan Stanley vet to source and close specialty real estate deals.
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Hypo Real Estate was on the brink of bankruptcy, according to published reports, but the German bank was rescued by a consortium of its peers.
Industry pros anticipate that in the next round of divestitures Zell will turn his attention to company's real estate.
Thomas & Betts plans to sell its plastic pipe business, which was acquired as part of its Lamson & Sessions buy in November 2007.
An outright sale is probably not in the cards for beleaguered Australian REIT Centro Properties Group, sources said last week.
With Southern California's real estate market in decline and amid growing shareholder activism, Maguire Properties is considering a sale.