Genting Malaysia has announced that its wholly-owned subsidiary, Resorts World Miami, LLC had on 26 April 2023 entered into a conditional sale and purchase agreement with Smart Miami City, LLC for the proposed disposal of four parcels of land in Miami measuring an aggregate land area of approximately 15.47 acres for a total cash consideration of USD1.225 billion (equivalent to approximately RM5.433 billion).
The Proposed Disposal involves the disposal of the Miami Herald Land to the Purchaser on an “as in where is” basis and with possession subject to the terms and conditions of the SPA. 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 centers in the United States of America.
In addition, the 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 hotspots such as Edgewater, Wynwood Art District and the Design District (a luxury shopping destination in South Florida).
Genting Malaysia acquired the land in 2011 and said the Miami property market has grown significantly since then as indicated by the Home Price Index nearly tripling to 398.56 as at 1 December 2022; the Group’s original cost of investment of USD259 million (equivalent to approximately RM1,149 million).
The group said the disposal was to take 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 will also provide GENM with financial flexibility for its operations and future investments as and when they arise.
Based on the Disposal Consideration of USD1.225 billion (equivalent to approximately RM 5.433 billion), GENM expects to realise an estimated gain on disposal of USD967 million (equivalent to approximately RM4,289 million)
