GGRAsia – GEN Malaysia shareholders nod US$1.2bln sale of Miami land

GEN Malaysia shareholders nod US$1.2bln sale of Miami land

Jun 16, 2023 Newsdesk Latest News, Top of the deck, World

Global casino operator Genting Malaysia Bhd announced on Thursday that its shareholders approved the same day a proposal to sell a wholly-owned subsidiary that owns four parcels of land in Miami, Florida, in the United States.

The casino investor is to sell Resorts World Miami LLC for a total cash consideration of just below US$1.23 billion. The suitor is Smart Miami City LLC, a unit of real estate developer Terra Group.

Genting Malaysia said in the filing that it was “pleased to inform” the market that its shareholders approved the deal at an extraordinary general meeting held on Thursday. Of the shareholders that voted, 979 were in favour of the deal, while 136 voted against it.

The four parcels of land – with an aggregate area of 673,691 square feet (62,588 sq metres) – are located close to commercial, residential, and shopping areas in Miami. Genting Malaysia acquired in May 2011 three of those plots, paying US$246 million. A fourth parcel was bought in May 2017 for US$13 million.

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.

In early May, the global casino operator said that US$1.0 billion of the Miami land transaction proceeds would be used to fund “future investments, as and when they arise”.

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.

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.