Genting Malaysia has announced plans to sell off a raft of non-gaming assets associated with its Resorts World Catskills (RWC) integrated resort in New York state, and subsequently purchase the land upon which those facilities sit, in a move designed to clear debt and reduce expenses held by its wholly-owned subsidiary Empire Resorts.
In a filing, the Malaysian gaming giant outlined details of the proposal by Empire to sell the 332-room RWC hotel, 99-room Alder Hotel, 18-hole Monster Golf Course, 2,500-seat RWC Epicenter and multiple restaurants to Sullivan County Resort Facilities Local Development Corporation (SCRFLDC) for a cash consideration of US$525 million.
It would then purchase 1,554.6 acres of land parcels – including those associated with RWC – from real estate investment trust EPR Properties for US$201.3 million and enter into a 20-year management agreement with SCRFLDC to manage all of the non-gaming assets.
The transaction would also enable Empire to redeem its US$300 million 7.75% Senior Unsecured Notes due 1 November 2026, resulting in Empire becoming debt free and allowing it to “its focus on improving operating performance and realising its full potential”.
The proposal will, it added, “reinforce Genting Malaysia’s long-term commitment to improve its competitive position within the New York State gaming market and the broader northeastern US region.”
The company expects that, when all is said and done, the transactions will leave it with a US$10 million surplus.
In outlining details of the proposal, Genting Malaysia noted that SCRFLDC is authorized by Sullivan County authorities to develop, own, construct and maintain certain infrastructure and related improvements located on the parcels in question, which includes RWC. By taking possession of them as governmentally owned and operated facilities, SCRFLDC will be able to relieve and reduce unemployment, promote and provide for additional employment, improve and maintain job opportunities and lessen the burden of government and act in the public interest.
Aside from RWC, Empire’s assets include Resorts World Hudson Valley and mobile sports wagering operator Resorts World Bet.
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