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Dispute between developer and Star-led consortium over Queen’s Wharf Brisbane development delays heading to court

Ben Blaschke by Ben Blaschke
Mon 21 Aug 2023 at 07:05
Hong Kong’s Far East Consortium sees gaming revenue rise 4.6% in FY20

The Queen’s Wharf Brisbane development.

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A dispute between the owners of the AU$3.6 billion Queen’s Wharf Brisbane development and its main contractor over delays to the project’s completion looks to be headed for court.

Star Entertainment Group, which holds a 50% stake in the Destination Brisbane Consortium alongside Hong Kong’s Chow Tai Fook and Far East Consortium with 25% each, announced Monday morning that the group has been served with an originating process in the Supreme Court of Queensland by contract builder Multiplex Constructions Qld Ltd. An originating process typically relates to issues of counterclaim.

As previously reported by Inside Asian Gaming, Star recently postponed the opening date of Queen’s Wharf Brisbane by four months from December 2023 until April 2024.

As a result, Destination Brisbane Consortium had been in discussions with Multiplex regarding the builder’s claims for additional costs extensions of time and damages, while the consortium itself has claims against Multiplex for damages payable due to delays in achieving key construction milestones under its contract.

In a Monday filing, Star said it understands Multiplex’s new court action is seeking “various declarations from the Court regarding extensions of time, relevant milestone dates, liquidated damages, variations and certain other matters, including potential sums payable, in connection with the contract.”

Destination Brisbane Consortium intends to defend the proceedings, it added.

Separately, Star also revealed that it was postponing release of its financial results for the year ended 30 June 2023 by five days to 29 August to allow time to incorporate impairments related to a recent increase in NSW casino duty rates.

However, FY23 guidance remains unchanged with Star expecting to report underlying EBITDA of between AU$280 million to AU$310 million, not excluding provisions for fines and costs associated with ongoing regulatory reviews.

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Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

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