Genting Miami property sale receives shareholder approval as company abandons casino
Genting Malaysia shareholders on Thursday approved the company’s plan to sell a Miami property for US$1.225 billion.
Genting Malaysia, a wholly-owned subsidiary of Genting Group, a conglomerate with interests in resorts, casinos, power generation and agriculture, became a major landowner in the Miami area more than a decade ago when it acquired properties that were previously . Miami Herald.
Genting purchased approximately 14 acres of Biscayne Bay Front Land in May 2011 for $236 million. In 2017, Genting spent $13 million to expand its Miami property and build another property adjacent to the Herald campus.
Genting acquired the property, which totals about 15.5 acres, in preparation for a move by Florida lawmakers to legalize commercial gambling and welcome casino developers. Genting spent a lot of time lobbying the state Legislature, without success.
Genting is abandoning its Sunshine State ambitions after 12 years of inaction. The company plans to use the winnings to support its other gambling activities domestically and internationally.
Shareholder Approval
Genting Malaysia held a special meeting on Thursday to consult shareholders on the divestment of properties in Miami. Owners easily approved the proposal, with 979 shareholders, representing nearly 3.6 million shares, supporting the sale. Only 136 shareholders, holding about 746,000 shares, voted against the deal.
The buyer is an investment group led by Terra Group, a commercial and residential real estate development company based in South Florida.
Genting is betting nearly $2.5 billion that the Seminole Tribe will lose its monopoly on Las Vegas-style casinos in Florida. Genting has pitched an integrated resort project called Resorts World Miami to state and local officials that is expected to cost $3 billion and would radically change Miami's skyline.
Resorts World is the gaming arm of Genting. The company and its subsidiaries own Resorts World casinos in Las Vegas, New York, Singapore, Malaysia and the Bahamas. Genting previously owned and operated an integrated resort in the Philippines.
Casino Not Popular
Genting offered Miami huge benefits in exchange for the city's pressure on state lawmakers to end the Seminoles' exclusivity on table games and slot machines outside of Miami-Dade and Broward counties. Genting has proposed funding an extension of the city's monorail to Miami Beach if the casino is allowed to be built.
Despite Genting's efforts to make things better, Florida's desire to legalize commercial casinos has not been successful.
New York Concentration
With plans to exit Miami now finalized, Genting officials said the company will use the proceeds to pursue its integrated resort goals in New York City. Genting Malaysia owns and operates Resorts World New York in Queens, which is currently a casino that only offers electronic table games and video lottery terminals (VLTs).
Resorts World New York is considered a leading candidate for one of three in-state casino licenses New York is poised to grant. Since opening in 2011, the speedway near JFK International Airport has generated more than $3.7 billion for the state lottery education fund.
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Source: www.casino.org
