Genting Malaysia proposes sale of Miami land for RM5.4bil

KUALA LUMPUR: Genting Malaysia Bhd expects to realise a gain on disposal of US$966mil (RM4.29bil) from the sale of four parcels of land measuring about 15.47 acres in Miami for US$1.23bil (RM5.43bil) cash.

In a filing with Bursa Malaysia, the group said its wholly-owned subsidiary Resorts World Miami LLC had 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 are located directly across the Adrienne Arsht Center for the Performing Arts of MiamiDade County, one of the largest performing arts centres in the US.

In addition, the Miami Herald Land is bordered by extensive connectivity to Miami International Airport, Brickell (South Florida’s major financial center), 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).

Genting Malaysia acquired the land in 2011, which incurred a cost of investment of US$259mil.

According to the filing, the group said the cash proceeds from the proposed disposal will be utilised for general corporate and investment purposes, including the funding of future investments as and when they arise.

"The Miami property market has grown significantly since Genting Malaysia’s 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 Genting Malaysia 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 Genting Malaysia with financial flexibility for its operations and future investments as and when they arise," said Genting Malaysia.

Trading in Genting Malaysia's securities was halted from 9am to 10am today in light of the announcement.

As at 11.20am, the trading stock of Genting Malaysia was up five sen to 1.87% to RM2.72 a share on the back of 9.36 million shares exchanging hands.