Genting Malaysia to invest US$1bn from Miami land sale
Genting Malaysia plans to use the funds for future investments.
Malaysia.- Genting Malaysia has revealed plans to use the proceeds from its sale of land in Miami to finance its future investments. It plans to use US$1bn of the funds from the US$1.22bn sale of its 15.47-acre property within 48 months. Anything left will be directed towards general working capital.
Genting sold the land to Terra Group real estate developer Smart City Miami. It had initially purchased three Miami plots in 2011 for US$246m, followed by the acquisition of a fourth parcel in May 2017 for US$13m.
While Genting Malaysia has not yet disclosed where the funds will be invested, analysts speculate that it may use it for attempts to gain a downstate casino licence in New York. The New York State Gaming Commission has launched a request for applications (RFA) process for three downstate New York gaming licenses, and Genting Malaysia is believed to be among the bidders.
The company currently operates an electronic games facility, Resorts World Casino New York City, and holds an investment in Empire Resorts Inc, which manages the full-service casino Resorts World Catskills in upstate New York. It also runs casinos in Egypt, the United Kingdom, and the Bahamas, besides its flagship casino property, Resorts World Genting in Malaysia.
For the fourth quarter of last year, Genting Malaysia posted a 65 per cent increase year-on-year in revenue, at MYR1.59bn (US$360.7m). The segment saw a 30 per cent growth in adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) to MYR467.3m.
The increase was attributed to higher revenue from the leisure and hospitality business in Malaysia amid a further relaxation of Covid-19 restrictions and the reopening of national borders in April 2022. The opening of Genting SkyWorlds theme park in February 2022 contributed to an increase in non-gaming revenue.
