(27th April, Malaysia) Genting is one of the casino Malaysia announced on Wednesday that it has found a buyer for its long-awaited Miami land sale plan. The company has signed a sale and purchase agreement with local developer Terra Group to sell four prime beachfront locations in Key Biscayne, Miami, for US$1.225 billion (approximately RM5.463 billion). After deducting the purchase price of US$259 million (approximately RM1.155 billion), Genting Malaysia is expected to obtain approximately US$967 million (approximately RM4.3 billion) net proceeds.
Genting Malaysia acquired the prime seaside location of Biscayne Bay in Miami in 2011 with plans to build a casino. However, the company failed to obtain a Florida gambling license, leading to the sale of the land.
“If this gain (after deducting related tax expenses) is included in the 2022 fiscal year, it can help the group turn from a loss of RM520 million to a net profit of RM2.795 billion,” Genting Malaysia said in a statement to the Bursa Malaysia.
The sale of the land is still subject to the approval of Genting Malaysia’s shareholders, and the transaction is expected to be completed in the third quarter of this year. Genting Malaysia plans to use the proceeds from the sale of the land for daily business operations and investment.
The sale of the land led to a 1.8% or 5 sen increase in Genting Malaysia’s stock, which rose to RM2.75 in early trading. At the close of the market, the stock was quoted at RM2.73, up 6 sen or 2.25%. A total of 12,032,200 shares changed hands in half a day.