Star Entertainment Group has agreed a new binding deal to sell its 50% interest in the Queen's Wharf development in Brisbane, reviving an exit that had fallen over weeks earlier. The revised agreement was revealed in an announcement to the Australian Securities Exchange (ASX), according to Gambling Industry News.
What has been agreed
Star had originally signed a binding agreement to sell its 50% stake in the Destination Brisbane Consortium (DBC) to Chow Tai Fook Enterprises and Far East Consortium International. Both are Hong Kong-based firms and Star's joint venture partners. According to the report, the terms of the new deal generally equate to the original agreement signed in March this year.
The buyers will pay around $34.7 million (A$53 million) for the stake, according to the report. Star has already received $29.5 million (A$45 million). It is due to receive the balance of $5.2 million (A$8 million) by a deadline of 30 November 2025.
Once the transaction completes, Chow Tai Fook Enterprises and Far East Consortium will take full ownership of DBC. Each currently holds a 25% stake in the project. The report says the two firms will then complete the process of finding a new operator to manage and run the casino. The source does not say who that operator might be or when one will be named.
Why the first deal fell through
Gambling Industry News reported last month that Star faced repaying $26.6 million after the original DBC buyout deal collapsed, with no new agreement in place at that point. The source material does not explain why the first deal collapsed. After what it calls weeks of uncertainty, the new agreement has now been announced.
A second stage involving Gold Coast assets
The arrangement has a second part, involving asset transfers between the three companies. The report says this should conclude in the second half of next year. Under the proposal, Star would receive the 67% stake that the two Hong Kong companies hold in two hotel and residential towers at The Star Gold Coast. These are the Dorsett luxury hotel and the Andaz, which is described as soon to be opened.
In return, the Hong Kong investors would receive other jointly held assets, including the Treasury Brisbane hotel and its car park. The report says both phases of the deal depend on regulatory approval, which it describes as usual for transactions of this kind.
Star's financial position
The report says the sale should end Star's heavy financial commitment to Queen's Wharf. It cites estimates that present liabilities sit at around $700 million. It also refers to talk that Star had blown its DBC budget by $1 billion. That figure is described as talk, and the source does not verify it.
The report also notes that Star posted a $192 million (A$302 million) net loss for the first half of its fiscal year, in a period it describes as ending 31 December 2024. In that period, it adds, Star faced a possible $100 million fine from the New South Wales Independent Casino Commission following several breaches of licensing conditions. The source does not say whether that fine has been imposed or what its final amount might be.
Star currently operates three resort destinations in Australia: The Star Brisbane, The Star Gold Coast and The Star Sydney. They offer casino, poker and table games, but the report says Star does not offer online casino gaming. Online casino services are prohibited in Australia under the Interactive Gambling Act 2001.
Until regulators sign off on both stages, the deal is not final. The report does not describe what approvals are needed or which regulators are involved.