Genting Group To Buy Boyd Gaming's Unfinished Echelon Site On Las Vegas StripMalaysian Gambling Company Spends $350 Million On Land |
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Nevada-based casino company Boyd Gaming has agreed to sell the site of Echelon, an unfinished Las Vegas-strip property to Genting Group, a Malaysian gambling company, for $350 million.
Though Genting has not yet secured a Nevada Gaming License, the company plans to build a 3,500-room casino resort named Resort World Las Vegas. Approximately 175,000 square feet will be designated as casino space and the property will include several restaurants and retails shops, along with a convention center.
The construction and operation of the new property is expected to create thousands of jobs for the Las Vegas area.
The site, once home to the famed Stardust Hotel and Casino, has sat vacant since its implosion in 2007. Though Boyd broke ground on the $4 billion Echelon project, work was stopped to prevent the company from going into bankruptcy.
The sale of the 87-acre lot will be used to pay Boyd Gaming’s outstanding obligations to LVE Energy Partners, according to a company press released. Boyd Gaming expects to pocket approximately $157 million in net proceeds from the deal.
Because of a $993.9 million impairment charge for not completing the Echelon project, Boyd Gaming reported a fourth quarter net loss of $899.9 million. For the 2012 calendar year, the company reported adjusted net revenues of $335.1 million from properties all over the United States.
Genting is a gaming industry giant in Asia and owns properties in Malaysia, the Philippines, Singapore, Hong Kong the United Kingdom and the Bahamas. Their only U.S.-based gaming property is the casino at the Aqueduct Racetrack in New York.
Genting spent $400 million on the site of the old Miami Herald building in South Florida with the hope of having legislation passed to allow a Las Vegas-style resort in Miami. However, pressure from the Seminole Indian Tribe, the Walt Disney Company and the Florida Chamber of Commerce caused the company to back out of their plan to build a casino.
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