Star Entertainment Resurrects Deal To Sell 50% Stake In Queen’s Wharf Brisbane Casino
Star Entertainment Group’s exit from Brisbane has been resurrected after it reached a new binding agreement to sell its 50% interest in the Queen’s Wharf development.
The Australian casino operator had originally entered a binding agreement to sell it’s 50% stake in the Destination Brisbane Consortium (DBC) to Hong Kong-based Chow Tai Fook Enterprises and Far East Consortium International, its joint venture partners.
As Gambling Industry News reported last month Star Entertainment faced repaying $26.6 million after the original DBC buyout deal collapsed, with no new agreement being reached.
After weeks of uncertainty, the revised deal was revealed in an announcement via the Australian Securities Exchange (ASX).
What Are The Terms Of The New Sale?
The terms of agreement generally equate to the original deal signed in March of this year.
The Hong Kong investors will pay around $34.7 million (AUS$53 million) for the position.
As Star has already received $29.5 million (AUS$45 million) it will receive the balance of $5.2 million (AUS$8 million) by the deadline of November 30, 2025.
The completed transaction will see Chow Tai Fook Enterprises and Far East Consortium assume full ownership of DBC and they will complete the process of finding a new operator to take over the management and running of the casino.
Both Hong Kong firms presently hold a 25% stake each in the project.
Other Asset Transfers In The Deal
Star presently operates three luxury resort destinations in Australia, The Star Brisbane, The Star Gold Coast and The Star Sydney, with casino, poker and table games, although it does not accommodate online casino gaming.
While the sale of DBC has the November deadline there is a second part to the arrangement involving asset transfers between the three firms, which should conclude in the second half of next year.
It is proposed that Star will receive the 67% stake that the two Hong Kong companies hold in two hotel and residential towers at The Star Gold Coast.
The properties are the Dorsett luxury hotel and the soon to be opened Andaz.
In return the Hong Kong investors will receive other jointly held assets, including Treasury Brisbane hotel and its car park.
As is usual, both phases will depend upon regulatory approval.
It should bring an end to Star’s heavy financial commitment to the Queen’s Wharf project, with estimates that present liabilities sit at around $700 million.
Amid talk that it had blown its DBC budget to the tune of $1 billion, the troubled operator posted a $192 million (AUS$302 million) net loss for the first half of the fiscal year ending December 31, 2024.
During that period it had also faced a possible $100 million fine from the regulator, the New South Wales Independent Casino Commission, following several breaches of licensing conditions.
Jim Munro is a betting industry and gambling expert who has been a national newspaper journalist for over 30 years, predominantly at The Sunday Times and The Sun, where he wrote a weekly soccer betting column. Jim also worked on the launch of Virgin Bet with Gamesys and was subsequently head of editorial at LiveScore, the sports media and betting group.
