KUALA LUMPUR: Genting Malaysia Bhd’s wholly owned subsidiary, Empire Resorts Inc, will divest its non-gaming assets in New York for US$525 million (RM2.2 billion) in a move aimed at strengthening its capital structure and financial health.
The assets will be sold to Sullivan County Resort Facilities Local Development Corporation (SCRFLDC) and include the 332-room Resorts World Catskills (RWC) hotel, the 99-room Alder Hotel, the 18-hole Monster Golf Course, the 2,500-seat RWC Epicenter, and several restaurants.
Proceeds from the sale will fund the acquisition of 629.2 hectares of land from EPR Properties for US$201.3 million (RM848.1 million), fully redeem Empire’s US$300 million (RM1.3 billion) 7.75% senior unsecured notes due November 2026, and support working capital.
Under the proposal, Empire will lease the land tied to the non-gaming assets from SCRFLDC until February 15, 2066, and manage these facilities under a 20-year agreement with automatic renewals.
“The disposal proceeds will allow Empire to redeem the Empire Bond in full, making the company debt-free and enabling it to focus on improving operations and unlocking its full potential,” Genting Malaysia said.
The land purchase will give Empire long-term control of 170 hectares housing RWC’s gaming and non-gaming facilities, plus 459 hectares of undeveloped land with growth potential. The transaction is expected to yield approximately US$10 million (RM42.1 million) in surplus cash for general working capital.
Genting Malaysia said the move underscores its commitment to strengthening its position in New York’s gaming market and the wider northeastern US region.
