Genting UK has sold Maxims Club Casino to a Canadian gaming group for £34.6 million after years of looking for a buyer
Malaysian casino and hospitality giant Genting Malaysia Bhd said Friday that its wholly-owned subsidiary Genting UK has offloaded its entire interest in Coastbright Ltd., the casino operator of Maxims Club Casino in Kensington, London.
A consortium of investors led by Canadian group Sonco Gaming Inc. has purchased the gambling venue for approximately £34.6 million, Genting said on Friday in a filing with Bursa Malaysia. Sonco is primarily engaged in the ownership and operation of gambling venues.
Located in a 19th century building in the heart of one of London’s liveliest and most thriving areas, Maxims Casino has long been touted as one of the most exclusive gambling venues in Kensington. Genting’s UK division owned the property for more than a decade before its recent sale.
According to previous reports, the gaming and hospitality company has been seeking to sell the casino as it has underperformed in recent years.
Genting said in Friday’s filing that the sale of the property would enable it to streamline its UK operations and that it would use proceeds from the transaction to reduce its borrowings as well as for other potential investment opportunities. The casino and hospitality giant expects to net a £23 million gain as a result from the disposal.
Genting first arrived in the United Kingdom in 2006, according to its official website. Over the past 13 years, the company’s UK division has bought and refurbished numerous properties across the nation. Genting UK currently operates more than 40 venues.
Reports about Genting seeking a buyer for Maxims have been floating around for several years now. It emerged in the fall of 2017 that the hotel and casino powerhouse had put the property up for sale with a £40 million price tag.
The company was quoted saying back then that it was open to “sensible conversations” about opportunities to sell the exclusive casino. Genting had also reportedly tapped property consultancy CBRE to handle any transaction that might occur.
It was believed that the gambling company was looking to dispose of the casino as it had lost some business in recent years. As mentioned above, the property, which occupies an 1860s building constructed for John Forster, a friend of Charles Dickens, might have lost clientele namely due to its location.
Maxims is located in one of the wealthiest parts of the UK capital and is competing with a number of other exclusive gaming clubs.