Hong Kong’s Chow Tai Fook Enterprises (CTFE) and Far East Consortium (FEC) have completed their acquisition of a combined 9.99% stake in Australian casino operator Star Entertainment Group.
Both CTFE and FEC now hold 45,825,000 shares in Star, representing 4.995% of its share capital, as part of a Subscription Agreement signed last month. The three companies are already partners in Brisbane’s AU$3 billion Queen’s Wharf Development, with Star stating in a recent filing that the Subscription Agreement “underpins the strategic partnership and better aligns the interests of The Star’s strategic joint venture partners with the long-term growth and financial performance of The Star.”
The Subscription Agreement forms part of a broader Strategic Alliance between the trio that includes a commitment by the parties to jointly pursue major growth developments in and around The Star’s properties in Sydney, Brisbane and the Gold Coast to increase their scale and appeal. The partnership will also establish a marketing alliance to drive high-end tourism.
As part of the Strategic Alliance, Star Entertainment Group will have exclusivity on any new Australian or New Zealand casino or gaming developments pursued by CTFE or FEC.
Among the expansion developments proposed as part of the Strategic Alliance is the development of a new underground train station alongside The Star Sydney in Pyrmont, in partnership with the NSW Government.
CTFE and FEC will also become involved in supporting and pursuing The Star Gold Coast Precinct Masterplan including up to five joint venture towers with potential for hotel and residential developments as well as expanded entertainment, tourism and retail developments.