Fresh from taking full control of Empire Resorts Inc, Genting Malaysia Berhad (GENM) has announced a strategic transaction worth US$525 million (RM2.2 billion) to unlock value and strengthen its capital structure.
The move involves selling Empire’s non-gaming assets in New York — including two hotels, a golf course, an event centre, and restaurants — to Sullivan County Resort Facilities Local Development Corporation (SCRFLDC).
What’s in the Proposal? 👀
The transaction, outlined in GENM’s bourse filing, has several key components:
Proposed Disposal
- Sale of non-gaming assets:
- Resorts World Catskills (RWC) Hotel – 332 rooms
- Alder Hotel – 99 rooms
- Monster Golf Course – 18 holes
- RWC Epicenter – 2,500-seat event venue
- Multiple restaurants
- Selling price: US$525 million (RM2.2 billion) 💰💰💰
Land Purchase
Debt Redemption
Long-Term Agreements
- 1,554.6 acres of land from EPR Properties for US$201.3 million (RM848.1 million)
- Funded from the disposal proceeds
Debt Redemption
- Full repayment of US$300 million (RM1.3 billion) senior unsecured notes due November 2026
- Land Lease: Until February 2066 for the non-gaming asset sites
- Management Contract: 20 years + two 5-year renewal options to operate the assets for SCRFLDC
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Why This Move? 👀💁
According to GENM, the deal will deliver long-term strategic and financial benefits:
- Full redemption of Empire’s bonds → making the company debt-free
- Frees up resources to improve operational performance
2. Land Ownership & Control
- Ownership of 1,554.6 acres unencumbered by debt
- Includes 420 acres with existing gaming/non-gaming assets + 1,134.6 acres vacant with development potential
3. Cost Savings & Financial Strength
- Eliminates lease payments to EPR
- Cuts interest expenses on the redeemed bonds
- Expected surplus cash of US$10 million (RM42.1 million) for working capital
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🌍 The Bigger Picture
SCRFLDC, authorised by Sullivan County authorities, operates these facilities as government-owned and operated infrastructure projects aimed at:
- Reducing unemployment
- Improving job opportunities
- Supporting local economic growth
EPR Properties, the seller of the land, is a US-listed REIT specialising in entertainment and leisure properties, often via sale and leaseback transactions.
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📈 Strategic Commitment
GENM says the proposal reinforces its long-term commitment to the New York State gaming market and the broader north-eastern US region.
Negotiations on final terms are ongoing, with further announcements expected in due course.
#GentingMalaysia #EmpireResorts #CorporateMoves #DebtFreeStrategy #GamingIndustry #USInvestment
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