The first move of Genting Malaysia after buying the assets of the U.K. operations from Genting Singapore last month is a dramatic one. Last month, the company announced it is partnering with private resort developer Apollo Resorts & Leisure Ltd. to build a “large” casino in the docklands area of Newham, where most of the events for the 2012 Olympic Summer Games will be held.
In British parlance, a “large” casino can have up to 150 slots, plus table games.
Newham is tendering a large casino license, for which the partners are bidding. Each will invest $4.6 million (GBP2.95 million) in the project and hold a 50 percent interest in the casino. Later, Genting will buy out Apollo. The agreement calls for Apollo to apply for the casino license and then transfer the license to Genting Casinos U.K. Ltd., a unit of Genting Malaysia, for £5 million, if the Apollo bid is accepted.
“It is intended for Genting Casinos to be the sole owner and operator of the casino,” Genting Malaysia said.
In a two-stage process, Apollo will bid for the license, with Genting not being included until the second stage. But even if Apollo is not successful in obtaining the license, planning will continue, says Genting. The second stage of the process is due to begin in November with a license issued in February 2011. Genting will begin construction of the casino in the third quarter of 2012 with completion anticipated in 2013.
The site is part of the Olympic Festival Village, which will remain a vital residential and entertainment site even after the games conclude.
Genting Malaysia acquired Genting Casinos U.K. Ltd. from Genting Singapore PLC for £351.5 million in cash in a transaction just completed last month.