Genting Malaysia to restructure Empire Resorts
Empire will sell a portfolio of non-gaming assets at its Resorts World Catskills property in New York.
Malaysia.- Genting Malaysia has announced a proposal to restructure its wholly owned subsidiary, Empire Resorts. The plan includes the sale of non-gaming assets in New York, including Resorts World Catskills’ 332-room hotel, Alder Hotel, the Monster Golf Course, RWC Epicenter and several restaurants to Sullivan County Resort Facilities Local Development Corporation (SCRFLDC) for US$525m.
Empire will lease back the land until 2066 and manage the facilities under a 20-year agreement, renewable for two additional five-year periods. In a stock exchange filing, Genting said proceeds from the sale will be used to buy 1,554 acres of land from real estate trust EPR Properties for US$201.3m, to redeem Empire’s outstanding US$300m senior unsecured notes due 2026, and to provide about US$10m in surplus working capital.
Genting Malaysia’s Q1 net profit was MYR52m (US$12.2m), up 42 per cent year-on-year. Revenue was MYR2.5bn (US$613m), down 6 per cent in year-on-year terms and 6 per cent sequentially. The group reported first-quarter adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) of MYR737.2m (US$173m), an increase of 13 per cent year-on-year.
