Deutsche Bank is planning to sell its 17 percent stake in Red Rock Resorts, which owns nine casinos in Las Vegas.
The move, first reported by The Financial Times, comes at a time when Red Rock is expanding its footprint in the city’s lucrative locals market with the purchase of another major locals venue, the Palms Casino Resort, for $312 million.
The bank is expected to record the Red Rock divestment, valued at $400 million, as a profit.
The FT report added that investment groups Oaktree and Fidelity are also selling their stakes in Red Rock, holdings totaling 3.8 percent and 6.9 percent of the company, respectively.
Deutsche Bank’s other major gaming investment ended about two years ago when it sold the Cosmopolitan Las Vegas on the Strip for $1.73 billion.
