Genting Malaysia Proposes Sale of Miami Land for $1.23 Billion
Genting Malaysia (GenM) Bhd, a wholly owned subsidiary of Resorts World Miami LLC, expects to realise a gain of $966 million from the sale of four parcels of land measuring about 15.47 acres in Miami for $1.23 billion.
In a filing with Bursa Malaysia (Malaysia’s stock exchange) on Thursday, the group said that it has entered into a conditional sales and purchase agreement with Smart Miami City LLC to dispose of the land, known collectively as Miami Herald land as it was formerly the location of the Miami Herald building.
The four parcels of land, measuring approximately 673,691 s ft or 6.2 hectares, are located directly across the Adrienne Arsht Centre for the Performing Arts of Miami Dade County, one of the largest performing arts centres in the US. Genting Malaysia acquired the land in 2011 at a cost of $259 million.
The company also said that the cash proceeds from the proposed disposal allows it to capitalise on market growth and unlock significant value in a non-core asset at an attractive price, enhancing the company’s cash position.
“This provides GenM with financial flexibility for its operations and funding of future investments as and when they arise,” said the company in its filing.
Genting Bhd has attracted five offers exceeding $1 billion potentially setting a record for such property.
The prime property, the former home of the Miami Herald newspaper, is one of the largest undeveloped tracts along the city’s waterfront. Genting began marketing it late last year.
In addition, the Miami Herald Land is bordered by extensive connectivity to Miami International Airport, Brickell (South Florida’s major financial centre), South Beach (one of the world’s top beach destinations) as well as emerging hot spots such as Edgewater, Wynwood Art District, and the Design District (a luxury shopping destination in South Florida).
Robert DeSalvio, president of Genting Americas East, said that in the coming months, they will be marshalling their resources with the goal of bringing a full commercial casino to New York City property and expand the already-tremendous offerings in Las Vegas.
“We are thrilled about the opportunities to expand in the two most significant gaming markets in North America,” Robert added.
“The Miami property market has grown significantly since Genting Malaysia’s acquisition in 2011, with the Miami Home Price Index nearly tripling to 398.56 as on 1 December 2022.
GenM, a premier integrated resort destination in Malaysia with 10,500 rooms, and features wide-ranging leisure and entertainment facilities, including gaming, theme park and amusement attractions, dining, and retail outlets, as well as international shows and business convention facilities. It also has presence in many countries including the US, the UK, Egypt, and Bahamas.
In Miami, the Group owns a contiguous 30-acre prime freehold waterfront site overlooking Biscayne Bay in downtown Miami, Florida. The site includes the Omni Centre, which consists of retail space, office space and the 527-room Hilton Miami Downtown.
In the United Kingdom, Genting Malaysia owns and operates over 30 casinos, making it one of the largest leisure and entertainment businesses in the country. Additionally, Genting Malaysia operates Resorts World Birmingham, the first integrated leisure complex of its kind in the UK, offering gaming and entertainment facilities, retail and dining outlets and a 182-room four-star hotel.
In the Middle East, Crockfords Cairo, an exclusive casino nestled within the posh surroundings of The Nile Ritz-Carlton Hotel in Cairo, is the Group’s first venture into the region. In the Bahamas, Resorts World Bimini is a 750-acre beachfront resort property on North Bimini Island. It has a casino, Hilton at RW Bimini, restaurants and bars, various resort amenities, the RW Bimini Cruise Port, a beach club as well as the largest yacht and marina complex on the island surrounded by turquoise waters and white-sand beaches.