Caesars Entertainment Corp. (NASDAQ: CZR) will sell its golf course property in Macau to developer Pearl Dynasty Investments Ltd. for $438 million, well shy of the $578 million Caesars paid for the property in 2007. The company wrote down $101 million on the property in the second quarter of last year and has been looking for a buyer ever since.
Unlike competitors Las Vegas Sands Corp. (NYSE: LVS), Wynn Resorts Ltd. (NASDAQ: WYNN), and MGM Resorts International (NYSE: MGM), Caesars was unable to secure a license to build a casino on its property. The company’s operations are primarily based in Las Vegas and Atlantic City.
Caesars claims to have received $65.7 million toward the purchase price so far, and expects to collect the rest within 90 days. Pearl Dynasty may request a one-month extension and will pay an additional $8 million in the event that it chooses to do so.
Caesars’ shares are up nearly 4% in mid-afternoon trading on Friday, but that could be due to reported discussions between Nevada and New Jersey to create an online gambling compact that could be extended to other states that legalize online gambling. Caesars’ World Series of Poker franchise is a huge positive for the company in the event such a compact could be approved.
Shares are up 4% at $18.31 after posting an all-time high of $18.73 earlier today. The 52-week low is $4.52. Caesars came public in February of 2012.
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