GGRAsia – GEN Malaysia earmarks US$1bln for new investments

GEN Malaysia earmarks US$1bln for new investments

May 05, 2023 Newsdesk Latest News, Top of the deck, World

Global casino operator Genting Malaysia Bhd says that US$1.0 billion of the proceeds to be generated from the sale of several land plots in Miami, Florida in the United States, will be used to fund “future investments, as and when they arise”.

In a filing to Bursa Malaysia this week, the firm said it expected such funds to be used “within 48 months” from the completion of the Miami land deal. “Any excess funds will be used for general working capital,” it stated.

The casino investor stated in late April that one of its units, Resorts World Miami LLC, is to sell four parcels of land – for a total cash consideration of just below US$1.23 billion – to Smart Miami City LLC, the latter a unit of real estate developer Terra Group.

Genting Malaysia acquired in May 2011 three Miami plots, paying US$246 million. A fourth parcel was bought in May 2017 for US$13 million.

Genting Malaysia has for some time been identified as a likely suitor for a downstate casino licence in New York. The New York State Gaming Commission in January launched a request for applications (RFA) process for three downstate New York gaming licences.

Maybank Investment Bank Bhd said in a recent note commenting on the Miami land sale deal that it does “not expect Genting Malaysia to declare special dividends but instead, to fortify its balance sheet to put forward a convincing bid to secure a lucrative downstate casino licence in New York”.

A number of investment analysts has suggested that Genting group could be a front runner there. It already runs an electronic games facility called Resorts World Casino New York City; and has investment in Empire Resorts Inc, which runs the full-service casino Resorts World Catskills, in upstate New York.

Genting Malaysia operates Resorts World Genting, Malaysia’s only licensed casino property. The group also runs casinos in the United States – via associated businesses – and in the Bahamas, the United Kingdom, and Egypt.