GGRAsia – Suitor pulls out of US$1.2bln Miami land sale by Genting

Suitor pulls out of US$1.2bln Miami land sale by Genting

Jun 23, 2023 Newsdesk Latest News, Rest of Asia, Top of the deck, World

The suitor in Genting’s circa US$1.23-billion land sale in Miami, Florida in the United States, has pulled out, said on Thursday a statement on behalf of vendor Genting Malaysia Bhd.

Smart Miami City LLC, a unit of real estate developer Terra Group, had “requested an extension of the exclusivity period and sought amendments to the commercial terms of the sale and purchase agreement,” stated Malaysia-based AmInvestment Bank Bhd, in a filing to Bursa Malaysia made by Genting Malaysia.

“The purchaser’s requests were not granted at this time and hence the purchaser has elected to end its current bid. Nevertheless, the purchaser remains interested in the Miami land,” said the bank.

The filing added: “Genting Malaysia has seen the value of its investment in Miami increase approximately 400 percent in just over a decade and firmly believes in the sustained strength and growth of the Miami market.”

The statement further noted: “Genting Malaysia will review other opportunities to close on the sale of the Miami land as-is while the company continues to enhance its remaining Miami holdings.”

Only last week, shareholders of Genting Malaysia had approved by a majority vote, the sale of Resorts World Miami LLC, a group entity holding the four parcels of land, for a total cash consideration of just under US$1.23 billion.

The four plots have an aggregate area of 673,691 square feet (62,588 sq metres). Genting Malaysia acquired in May 2011 three of the parcels, paying US$246 million. A fourth 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 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.