Genting Set to Sell Undeveloped Miami Land for $1.22B

Spread the Word:

Malaysian-based conglomerate and casino resort operator Genting Group agreed this week to a deal to sell its 15.47 acres of land in Miami, Florida.

The operator had been planning to build a casino and resort on the Biscayne Bay site since 2011. However, it struggled to gain local authority approval for the project, and the land was announced as up for sale in 2022.

A consortium of local real estate developers known as SmartCity Miami LLC was the winning bidder at $1.225 billion. When the transaction completes, it is expected to be the highest-value urban real estate purchase in Florida’s history.

“This is a prized piece of real estate in the heart of one of the world’s most dynamic and fastest-growing cities, and we are honored to have been selected as the property’s next owner,” said David Martin, CEO of SmartCity investors Terra Group.

Related: Our expert guide to the best online casinos in Florida

Significant Profits

Genting first bought the land, which was previously the site of the Miami Herald newspaper’s offices, for $236 million in 2011.

It planned to build a Miami Resorts World casino and hotel on the site. As part of its attempts to woo local government, the operator even proposed funding a new $700 million metro monorail line in the area.

However, in the end, a combination of factors killed Genting’s proposed casino. Not least of which was the opposition of the influential Seminole Tribe, owners of the international Hard Rock brand.

Although it did not build its casino, Genting still stands to make a hefty return on the land. Even when factoring in potential costs of $255 million over the 12 years of ownership, it is poised to reap $966 million from the sale.

Despite receiving nine offers from all over the world, including five of more than one billion dollars, Genting seemed to respect local bidders the most.

“There were lots of attractive elements in SmartCity’s bid, but above all, their deep understanding of – and commitment to – smart development in Miami made them by far and away the best choice,” said Kevin Jones, SVP at Genting Americas.

SmartCity’s bid also lets them keep some of the land, too, with Genting holding on to 10 acres on the west side of the site near Biscayne Boulevard.

The “new partnership with SmartCity will lead to real benefits for the residents of Miami,” Jones added.

Earmarked Capital

However, any profits Genting does make off this sale will probably not be sitting idle for long. The international casino operator currently runs Resorts World New York, a slots-only venue in Queens, New York, that is soon expected to receive one of three new casino licenses in the state’s downstate area.

This would mean a massive upgrade to the site for a full casino experience, all at some expense.

“We do not expect a special dividend, as the unlocked capital is already earmarked. Genting Malaysia is bidding for a New York table gaming license, and the projected capital expenditure is US$1 billion,” analysts from investment bank JP Morgan told The Edge Markets.

Genting may have to wait a while for the cash, however, as the land sale is not expected to be completed until Q4 2023.

Related News

November 28, 2023

All Net Arena Las Vegas Denied Land Permit Extension

The long-proposed All Net Arena in Las Vegas (renderings pictured) is now officially not happening. The $5 billion resort idea supposedly broke ground back in 2014. But since then, not […]

November 24, 2023

Mohegan Inspire Casino Resort in South Korea Set for Opening

Mohegan, the casino gaming arm of the Mohegan Tribe of Connecticut, has announced the opening date for its long-awaited $1.6-billion casino resort in Incheon, South Korea. The soft launch for […]

November 3, 2023

Oklahoma Sports Betting Plans Set by Governor Stitt, Surprising Some Tribes and Lawmakers

Governor Kevin Stitt of Oklahoma (pictured) has put forward a comprehensive plan to introduce legal sports betting within the state, aiming to launch in-person and online wagering options. The proposal […]

November 2, 2023

ESPN Bet Launch Set for November 14

ESPN Bet, the highly anticipated sports betting platform with Penn Entertainment, is set to make its debut on November 14 across 17 U.S. states. This launch comes several months after […]

Stay Ahead of the Game

Are you ready to take your online gambling experience to the next level? Sign up for the LetsGambleUSA newsletter and get the latest news, exclusive offers, and expert tips delivered straight to your inbox.