The Westchester Industrial Portfolio is situated in infill locations and are strategically located properties that benefit from significant barriers to entry, limited new supply and connectivity to major New York transportation infrastructure.
MONTICELLO—A bond deal valued at $561 million that would have a Local Development Corporation issue bonds to finance the acquisition of the non-gaming assets of Genting Group’s Resorts World Catskills casino resort property here has been delayed, according to multiple press reports.
The bond issue, which was set to price this week under the management of KeyBanc Capital Markets, by the Sullivan County Resort Facilities Local Development Corporation was pulled as investors pushed to hire legal counsel before moving forward, Bloomberg reports. The transaction was expected to close in early September.
Genting Malaysia announced components of the bond sale deal on Aug. 15 stating that its Board of Directors approved the transaction that would involve its wholly owned subsidiary Empire Resorts Inc. selling its non-gaming assets comprised of the 332-room Resorts World Catskills hotel, the 99-room Alder Hotel, the 18-hole Monster Golf Course, the 2,500-seat RWC Epicenter and multiple restaurants to the Sullivan County Resort Facilities Local Development Corporation for $525 million in cash.
The transaction also involves a Genting entity purchasing 1,554.6 acres of land parcels from EPR Properties for a cash consideration of $201.3 million that would be funded via proceeds from the non-gaming assets disposal. The deal also includes retirement of approximately $300 million in debt, entering into a land lease through Feb. 15, 2066, with the Sullivan County Resort Facilities Local Development Corporation for all land under the non-gaming assets and entering into a 20-year management agreement (with automatic renewal for two successive five-year periods) with SCRFLDC to manage all the non-gaming assets at the Monticello resort.
“Resorts World Catskills took this action to further its commitment to the Sullivan Catskills region, along with New York State as a whole,” Meghan Taylor, Senior Vice President of Government Affairs and Public Relations for Resorts World Catskills told the Sullivan Democrat. “Net proceeds from this transaction will enable us to purchase all lands currently leased from a national Real Estate Investment Trust, allowing us to play a more direct role in promoting growth and development in the area. In addition to our continued ownership and operation of the casino, this transaction will see us continue to manage non-gaming assets as part of a multi-decade agreement with Sullivan County Resorts Facility Local Development Corporation. RWC is thankful to our partners in Sullivan County for continuing to work with us to deliver positive economic development for this community.”
Genting opened Resorts World Hudson Valley, a 60,000-square-foot electronic gaming facility, in Newburgh in December 2022 and is in the process of seeking approval of a full gaming license for its Resorts World New York City property at Aqueduct Racetrack in Queens. The $5.5- billion project, if approved later this year by the New York State Gaming Commission, will create a 5.6 million-square-foot integrated resort that will feature 6,000 slot machines, 800 gaming tables, 2,000 hotel rooms, a 7,000-seat arena, more than 7,000 parking spaces, over 30 food and beverage outlets, and more than a dozen acres of community greenspace.
The Westchester Industrial Portfolio is situated in infill locations and are strategically located properties that benefit from significant barriers to entry, limited new supply and connectivity to major New York transportation infrastructure.
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