Genting Malaysia Bhd anticipates a RM4.29 billion gain on disposal from the sale of four parcels of property totaling about 15.47 acres in Miami for around RM5.43 billion in cash.
Resorts World Miami LLC, the group's wholly-owned subsidiary, has signed into a conditional sales and purchase agreement with Smart Miami City LLC to dispose of the land, known collectively as Miami Herald land because it was once the site of the Miami Herald building.
The gaming group purchased the site in 2011, for a total expenditure of $259 million.
"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," Genting said in a filing with Bursa Malaysia.
Genting said that the cash proceeds from the planned sale will be used for general corporate and investment reasons, including supporting future investments as they occur.
The four pieces of property are just across the street from the Adrienne Arsht Centre for the Performing Arts of Miami-Dade County, one of the largest performing arts venues in the United States.
Furthermore, the Miami Herald Land is surrounded by extensive connectivity to Miami International Airport, Brickell (South Florida's major financial centre), South Beach (one of the world's top beach destinations), and emerging hotspots such as Edgewater, Wynwood Art District, and the Design District (South Florida's luxury shopping destination).