Genting Malaysia Bhd’s shares climbed to a one-month high today after it issued a statement to the Kuala Lumpur stock exchange, stating that it plans to invest at least $4 billion to develop the U.S.’ biggest convention and exhibition centre.
According to the statement, the centre will include as many as 3,000 hotel rooms and may help boost visitors to its nearby casino in the Aqueduct Racetrack in Queens, which Genting says it also plans to expand as part of the investment.
In a report by Bloomberg, Genting’s new investment came to light when New York Governor Andrew Cuomo yesterday called for the replacing of the Jacob Javits Convention Center in Manhattan with a new 3.8 million-square-foot complex. Cuomo said in his State of the State speech in Albany that the current centre is “not competitive” and the proposed Genting project will eclipse Chicago’s McCormick Place.
Head of research at Hong Leong Financial Group Bhd, Low Yee Huap, said in an interview in Kuala Lumpur: “It is a long-term planning that they do to make sure that in the future, there will be more consistent flow of business and people there.”
However, Genting Malaysia’s New York unit has not yet been finalised and is currently “in talks with the state”. Its statement revealed an expected binding agreement by the end of November.
If it does go forward, the investment will only further extend the Malaysian company’s reach in the U.S.
Genting Malaysia climbed 0.8% to 3.91 ringgit as of 4p.m. in Kuala Lumpur, set for its highest since 5 December.