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Terra’s record $1.2 billion purchase of a site near Downtown Miami has fallen apart.
A joint venture led by the Miami-based developer went under contract in April to buy the 15.5-acre parcel at 1431 N Bayshore Drive between the MacArthur and Venetian causeways that lead to Miami Beach, offering 800 linear feet of direct frontage on Biscayne Bay.
The deal was set to close later this year, but the buyers “requested an extension of the exclusivity period and sought amendments to the commercial terms of the purchase and sale agreement,” according to a joint statement with the seller, Malaysian casino operator Genting Group.
The seller declined Terra’s request, and Terra scrapped its bid, even though its shareholders had approved the deal last Wednesday. Genting is now seeking a new buyer.
The parcel hit the market in November and received five bids over $1 billion, according to Avison Young’s Michael T. Fay, John K. Crotty, David Duckworth and Brian C. de la Fé, who are brokering the parcel on Genting’s behalf.
Genting paid $235 million in 2011 for the land, which housed the headquarters of the Miami Herald newspaper. The company demolished the building in hopes of constructing a $3 billion casino complex, which ultimately never got underway.
The bid came as Terra, led by David Martin, was buying out an oceanfront condominium in Miami Beach for $500 million. While the negotiations with unit owners are still ongoing, the deal could become Miami’s most expensive condo buyout.
Terra has declined to comment on how it would finance the $1.2 billion acquisition near Downtown Miami. It has also declined to name its partners. It remains interested in the site and could bid again.
The Real Deal first reported the deal’s cancellation.
Julia Echikson can be reached at jechikson@commercialobserver.com.
UPDATE: This story has been updated to reflect that Terra, rather than Genting, called off the deal.
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