Monday 07 Oct 2024
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KUALA LUMPUR (April 27): Genting Malaysia Bhd (GenM) expects to realise an estimated gain on disposal of US$967 million (RM4.289 billion) from the disposal of four parcels of land in Miami measuring 15.47 acres (Miami Herald land) for US$1.225 billion.

In a Bursa Malaysia filing on Thursday (April 27), GenM said its unit Resorts World Miami LLC had entered into a conditional sale and purchase agreement (SPA) with Smart Miami City LLC.

The gaming group said the disposal of the Miami Herald land to the purchaser on an “as is where is” basis and with possession subject to the terms and conditions of the SPA.

GenM said the Miami Herald land is close to the commercial, residential and shopping areas in Miami, Florida, and is located directly across the street from the Adrienne Arsht Center for the Performing Arts of Miami-Dade County, one of the largest performing arts centres in the US.

In addition, it said 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 hotspots such as Edgewater, Wynwood Art District and the Design District (a luxury shopping destination in South Florida).

GenM said the cash proceeds to be generated from the proposed disposal are intended to be utilised for general corporate and investment purposes, including the funding of future investments as and when they arise.

On the rationale for the sale, GenM said the Miami property market has grown significantly since its acquisition of the Miami Herald land in 2011, with the Miami Home Price Index nearly tripling to 398.56 as at Dec 1, 2022.

“As such, the proposed disposal provides GenM with the opportunity to capitalise on the growth of the market and unlock significant value in a non-core asset at an attractive price, enhancing the cash position of the company.

“This provides GenM with financial flexibility for its operations and future investments as and when they arise.

“Based on the disposal consideration of US$1.225 billion (equivalent to approximately RM5.433 billion), GenM expects to realise an estimated gain on disposal of US$967 million (equivalent to approximately RM4.289 billion),” it said.

Trading in the securities of GenM was halted for one hour from 9am-10am on Thursday.

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