3 days ago
- Business
- New Straits Times
Genting Malaysia to sell RM2.2bil of non-gaming assets in New York
KUALA LUMPUR: Genting Malaysia Bhd's wholly-owned Empire Resorts Inc will sell its non-gaming assets in New York for US$525 million (RM2.2 billion) as part of a plan to strengthen its capital structure and financial position.
Genting Malaysia said the non-gaming assets will be sold to Sullivan County Resort Facilities Local Development Corporation (SCRFLDC).
They comprise the 332-room Resorts World Catskills (RWC) hotel, 99-room Alder Hotel, 18-hole Monster Golf Course, 2,500-seat RWC Epicenter and multiple restaurants.
Proceeds from the disposal will be used to buy 629.2 hectares of land from EPR Properties for US$201.3 million (RM848.1 million), redeem Empire's US$300 million (RM1.3 billion) 7.75 per cent senior unsecured notes due November 2026, and fund working capital needs.
As part of the proposal, Empire will enter into a land lease with SCRFLDC until February 15, 2066 for all land under the non-gaming assets, as well as a 20-year management agreement, with automatic renewals, to manage those assets.
"The proceeds from the disposal will enable Empire to fully redeem the Empire Bond, resulting in Empire being debt-free. This allows Empire to continue its focus on improving operating performance and realising its full potential," it said.
It added that the acquisition of the land parcels will give Empire long-term control over 170 hectares where RWC's gaming and non-gaming facilities are located, in addition to 459 hectares of vacant land with development potential.
The proposed disposal is expected to generate about US$10 million (RM42.1 million) in surplus cash for the Empire's general working capital.
Genting Malaysia said the move reinforces its commitment to improving its competitive position in New York's gaming market and the broader northeastern United States.
