Deal reached for Star to transfer 50% ownership of Queen's Wharf Brisbane to Hong Kong associates, as outlined in the binding contract
Star Entertainment Group Sells 50% Stake in Queen's Wharf Brisbane to Hong Kong Partners
In a significant move, Australia's Star Entertainment Group has agreed to sell its 50% interest in the $3.6 billion Queen's Wharf Brisbane development to its Hong Kong partners. This decision is part of a broader restructuring and financing strategy aimed at addressing Star's financial challenges.
The specific terms of the agreement have not been disclosed, but the transaction involves US-based Bally’s Corporation, which has committed $300 million in a rescue package for Star. The deal includes convertible notes and a reduction of Bally’s stake due to a $100 million commitment from the Mathieson family, major Star shareholders.
Queen's Wharf Brisbane, a landmark precinct that blends heritage and modern architecture, officially began staged opening in August 2024. The precinct includes The Star Brisbane casino, luxury hotels, restaurants, entertainment venues, and public artworks, all strategically situated on more than 12 hectares of Brisbane’s river edge.
Star Entertainment Group will also dispose of its interest in the Queen's Wharf ownership entity Destination Brisbane Consortium (DBC) to Chow Tai Fook Enterprises and Far East Consortium. The Hong Kong-based companies currently hold 25% each of DBC. Star will assume the combined 67% stake currently held by Chow Tai Fook and Far East Consortium in two hotel and residential towers located at The Star Gold Coast.
The management of the casino at The Star Brisbane will be transitioned to a replacement operator. The long-form documentation is binding, but the transaction has not yet been finalized.
The initial agreement between Star Entertainment Group and its partners collapsed less than two weeks ago. The announcement was made by Ben Blaschke, Inside Asian Gaming. The transaction does not include any other casinos owned by Star Entertainment Group.
This sale is a significant source of financing in Star's current arrangement. The transaction details regarding the hotels and residential towers at The Star Gold Coast have been specified. The involvement of Bally’s Corporation brings new leadership and capital infusion, as Bally’s chairman Soo Kim has joined Star and expressed optimism about the casinos returning to profitability within a reasonable timeframe.
Star Entertainment Group is working to stabilize its finances following casino license suspensions and other operational difficulties. The company faces obligations to repay $36.5 million to its Brisbane partners if a buyout plan is completed. The sale of Star's stake in the Brisbane project is a significant step towards addressing these challenges.
Queen's Wharf Brisbane is a commercial casino that forms a premium tourism and entertainment hub featuring a 5-star hotel, a large ballroom event center, rooftop dining with panoramic views, and public leisure spaces. The precinct is a testament to the vibrant blend of heritage and modernity that characterizes Brisbane's river edge.
[1] Star Entertainment Group to sell 50% stake in Queen's Wharf Brisbane to Hong Kong partners, Inside Asian Gaming, [Link] [2] Queen's Wharf Brisbane, Destination Brisbane Consortium, [Link] [3] Bally's Corporation to invest $300 million in Star Entertainment, Inside Asian Gaming, [Link] [4] Star Entertainment Group ASX filing, [Link]
Read also:
- Discusses Rasmus Sojmark's thoughts on the Legends Charity Game before SBC Summit
- Stone mining has transformed the once renowned 'Sada Pathor' into a desolate, post-apocalyptic landscape.
- In the Heart of Soho, Manhattan, a New Brewery Emerges Underground
- Financial regulatory body OCC imposes Anti-Money Laundering (AML) disciplinary action against Wells Fargo.
