Genting Group to Buy Echelon Site, Develop New Resort - 8 News NOW

Genting Group to Buy Echelon Site, Develop New Resort

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Genting Group Rendering of Resorts World Las Vegas Genting Group Rendering of Resorts World Las Vegas
Original Design for Echelon Original Design for Echelon
The Stardust was imploded in 2007 to make way for Echelon. The Stardust was imploded in 2007 to make way for Echelon.

LAS VEGAS - Boyd Gaming Corporation announced Monday it has agreed to sell Echelon to the Genting Group for $350 million in cash. The deal includes improvements to the site and is expected to close Monday. Genting announced it plans to develop a resort property on the site.

"Our highest priority is strengthening our balance sheet. The sale of the Echelon site is another important step in the ongoing effort to improve our long-term financial position," said Keith Smith, president and CEO of Boyd Gaming in a statement. "While we remain committed to the Las Vegas market, we determined that developing a large-scale project on the Las Vegas Strip was not consistent with our current strategy."

Slideshow: Genting Group to Develop Strip Resort

The sale of the land to Genting Corporation could represent a major boost to the Nevada economy. Sources have told 8 News NOW the Malaysian conglomerate is exploring plans to invest as much as $5 billion in the development of a massive resort project at the Echelon site, which could generate thousands of new jobs. The new development will be titled Resorts World Las Vegas and include 3,500 rooms and 175,000 square feet of casino space.

Sources tell the I-Team Genting Group had a reported $4.4 billion in cash as of a few months ago and has been exploring investment options. One option under discussion for the Echelon site includes the development of a stadium or arena on the Strip. Negotiations for the purchase from Boyd have been under development for weeks, conducted in utmost secrecy.

"We are incredibly grateful to the leaders of the State of Nevada, Clark County and the City of Las Vegas for joining us in announcing what will be a fantastic addition to the top resort destination in the United States," said KT Lim, chairman and CEO and the Genting Group in a statement. "This is a great day for Genting, Las Vegas, and the State of Nevada, and we look Group forward to taking full advantage of this exciting new opportunity."

"The entrance of one of the world's leading resort gaming developers into Nevada is another fantastic sign that Las Vegas and The Strip are poised for great things moving forward in 2013 and beyond," Republican Governor Brian Sandoval said. "The Genting Group and Resorts World Las Vegas will bring several thousand new jobs to our State, and will help us in keeping our economic resurgence on the right path towards success. I'd like to welcome Genting to the great state of Nevada, and we all look forward to the ground breaking of this new dynamic project."

Echelon sits on Las Vegas Boulevard, north of Spring Mountain Road. For years, the land was the site of the Stardust Hotel and Casino, which Boyd Gaming imploded in 2007. Boyd Gaming halted construction on Echelon in 2008.

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