Star Entertainment has reached a binding agreement to exit its role as both operator and part-owner of Brisbane’s A$3.6bn Queen’s Wharf casino project, striking a deal with its Hong Kong-based partners aimed at easing severe financial strain.
Under the terms announced to investors, Star will sell its 50% stake in the consortium behind Queen’s Wharf, along with the Treasury Brisbane hotel and car park, to its joint venture partners.
In exchange, the ASX-listed operator will receive A$53m upfront (of which it has already received A$45m), with the potential for an additional A$225m in 2030, contingent on the project’s financial performance.
The arrangement will also see Star acquire stakes in two Gold Coast hotels adjacent to its existing casino there.
The deal remains subject to multiple regulatory approvals, including state government consent for the change in ownership.
No replacement operator for Queen’s Wharf has yet been named, but the agreement specifies that Star will hand over management responsibilities to the incoming operator at a future date.
The decision to withdraw from Queen’s Wharf will alleviate a substantial financial burden.
The consortium had been expecting further equity injections of A$212m from Star, while a A$1.4bn loan facility tied to the development was due for refinancing in December.
By stepping away, Star avoids these obligations, a move that could significantly alleviate its cash flow pressures.
Star’s financial downturn has been stark. Once trading above A$5 per share, its share price sits at around A$0.11 today, reflecting the impact of sustained regulatory inquiries, increased compliance costs, and changes to gaming regulations.
The company has also faced reputational damage linked to its partnerships, including alleged past associations of one partner with organised crime figures, though no wrongdoing has been proven in relation to Queen’s Wharf.
While the deal offers immediate financial relief, its completion hinges on navigating a complex approval process. State regulators will assess both the ownership changes and the suitability of the incoming operator.
Without approval, the transaction cannot proceed, leaving the company’s future structure uncertain.
Industry analysts note that the agreement could represent a pragmatic step for Star to stabilise its balance sheet and focus on existing operations, particularly on the Gold Coast.
However, the timing of regulatory decisions and the identity of the new operator remain critical unknowns that could influence the final outcome.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source next.io ’
