Icahn to sell casinos for $1.3 billion

Billionaire investor Carl Icahn is selling the Stratosphere and three other southern Nevada casinos to an affiliate of investment firm Goldman Sachs for $1.3 billion.

Along with the tallest structure on the Las Vegas Strip, the sale announced Monday included two off-Strip Arizona Charlie’s casinos and the Aquarius Casino Resort in the Colorado River town of Laughlin.

The deal between American Real Estate Properties Corp., a unit of Icahn’s American Real Estate Partners, and Whitehall Street Real Estate Funds includes 17 acres of undeveloped land at the Stratosphere.

The Stratosphere includes a 2,444-room hotel and a separate 1,149-foot tower resembling the Space Needle in Seattle. The Aquarius, formerly the Flamingo Laughlin, has about 1,900 rooms and is one of the largest hotels in Laughlin, about 100 miles south of Las Vegas. The sold properties together were known as American Casino & Entertainment Properties.

“We believe that this sale represents an opportunity for American Real Estate Partners to take advantage of the current favorable market environment for gaming assets and to realize significant gains on our multiyear investment in the industry,” said Icahn, chairman of American Real Estate Partners.

The deal is subject to approval by Nevada gambling regulators.