• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Tuesday 16 September 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
No Result
View All Result
IAG
No Result
View All Result

Star offloads Brisbane IR stake to Hong Kong partners as last-ditch deal staves off insolvency

Ben Blaschke by Ben Blaschke
Sat 8 Mar 2025 at 08:23
Star celebrates long-awaited opening of AU$3.6 billion Queen’s Wharf Brisbane development

The Star Brisbane opened in August

40
SHARES
999
VIEWS
Print Friendly, PDF & Email

Australia’s Star Entertainment Group will relinquish its 50% stake in The Star Brisbane while offloading all related debt as part of a binding heads of agreement entered into Friday with its Hong Kong joint venture partners, Chow Tai Fook Enterprises and Far East Consortium.

Under the terms of the deal, which includes termination of its casino management agreement for the property, Star will receive cash payments of AU$53 million (US$33 million) — AU$35 million immediately, AU$11 million on 31 March and $8 million no later than 30 November — aimed at supporting the company’s immediate liquidity needs, plus a fixed fee of AU$5 million (US$3.2 million) per month as part of a transitional period during which Star will continue to provide casino management services through March 2026. It may also receive up to AU$225 million (US$142 million) in future consideration from an earn-out mechanism in respect of The Star Brisbane.

Perhaps most significantly, the agreement solves a chunk of Star’s debt problems with the company no longer required to make any further equity contributions to the Destination Brisbane Consortium (DBC) joint venture partnership after 31 March 2025. Star had expected its future equity contributions to DBC to total at least AU$212 million (US$134 million) plus any additional equity contribution that may have been required as part of the refinancing of the AU$1.4 billion (US$883 million) DBC debt facility, maturing in December 2025.

While Star will completely exit the Brisbane integrated resort development, the agreement boosts its exposure at The Star Gold Coast where it will acquire its joint venture partners’ interests in two hotel and residential towers – Dorsett and the soon-to-open Andaz. As a result, Star’s interest in each will increase from 33.3% to full ownership.

This, Star explained, means it now has full ownership of all gaming and non-gaming assets at The Star Gold Coast, which “will enhance The Star’s customer offering and provide further depth to its accommodation mix on the Gold Coast.” Star also retains all rights to future development of the site which may include up to three additional towers under the company’s Gold Coast Masterplan.

Star said it had received AU$35 million (US$22 million) in cash from its joint venture partners on Friday which it intends to use for short term liquidity purposes as it seeks to implement other liquidity initiatives.

The Star Gold Coast

In a separate filing on Friday, Star revealed it has also entered into documentation for a senior secured AU$250 million (US$158 million) bridge facility, plus an exclusivity and process deed relating to a refinancing proposal which it says could provide total debt capacity for the group of up to AU$940 million (US$593 million).

The bridge facility is with funds managed by global investment firm King Street Capital Management and aims to provide additional liquidity for the group while it seeks to secure sufficient liquidity to implement a longer-term refinancing of its existing senior debt.

Assuming the approval of lenders and regulators, the facility requires Star pay an annual all-in interest rate of 15%, paid monthly in arrears, while retaining a minimum liquidity covenant of AU$10 million (US$6.3 million) available cash, among other conditions precedent.

In relation to the additional debt refinancing proposal, Star said it would, if realized, provide sufficient liquidity to refinance all of the group’s existing corporate debt, with a quantum of AU$750 million (US$473 million) and an ability to pay interest-in-kind for a period of time such that the proposal would have the capacity to provide up to AU$940 million.

The lender has undertaken due diligence enquiries and engaged in preliminary discussions with governments and regulators in relation to the refinancing proposal, Star explained.

In announcing the transaction, Star’s Group CEO and Managing Director Steve McCann said, “This transaction is an important milestone for the company and contributes to providing a potential pathway towards financial viability. Our team has worked hard to deliver The Star Brisbane and establish a new precinct for Brisbane. We are grateful for the efforts of all of our employees and we will work with our joint venture partners and the regulator to transition to a new casino operator in due course.

“We are excited about our future in the Gold Coast. We will have almost 1,200 hotel rooms at the Gold Coast following the opening of the 5-star Andaz Hotel in late 2025 and believe that once we optimize these operations and our strategy, our full ownership of these hotels will enhance our integrated offering and provide an opportunity to improve the performance of the business. The receipt of cash funding will provide additional support in the near-term as we focus on putting in place additional liquidity measures and seek to implement a whole of company refinancing.

“This transaction is a step in the right direction for The Star. There are still a number of challenges that we need to address, including progressing short and long-term liquidity for the Company. We remain focused on the remediation of the business and restoring our reputation as a suitable licensee at both The Star Gold Coast and The Star Sydney.

“While there is more to do to have access to the funding from the Bridge Facility and the Refinancing Proposal, these initiatives, together with the agreement to exit Destination Brisbane Consortium and expand our operations at the Gold Coast, improve our capacity to have a viable future, both for the company and its stakeholders.

“We are now focused on implementing these proposals, including continuing our engagement with governments, regulators and existing lenders to seek their support for our plan. We also remain focused on implementing our plan to restore our licences.

“The company still faces various risks, including the availability of funding, the ability to restore our licences (including implementing our remediation plan and various regulatory reforms relating to carded play and cash and time limits), maintaining support from stakeholders, resolving the various litigation and claims from historical issues and managing the business in a period of continuing lower revenue and negative cashflow.

“I would like to thank our team for their efforts and our stakeholders for their support in relation to the important matters we announced today.”

RelatedPosts

Entain Australia and New Zealand CEO Andrew Vouris announced as Featured Speaker at Regulating the Game 2026

Entain Australia and New Zealand CEO Andrew Vouris announced as Featured Speaker at Regulating the Game 2026

Sun 14 Sep 2025 at 11:33
Aristocrat in leadership shakeup with former Light & Wonder exec Dylan Slaney to lead online unit, Barry French taking over corporate affairs

Aristocrat in leadership shakeup with former Light & Wonder exec Dylan Slaney to lead online unit, Barry French taking over corporate affairs

Fri 12 Sep 2025 at 07:20
Unhitching Online Poker

Australian government reportedly ready to proceed with gambling advertising reform

Thu 11 Sep 2025 at 14:51
Entain looking to sell Australian pub poker and trivia business

Entain looking to sell Australian pub poker and trivia business

Mon 8 Sep 2025 at 21:34
Load More
Tags: AustraliaChow Tai Fook EnterprisesDestination Brisbane ConsortiumFar East ConsortiumloanStar Entertainment GroupSteve McCannThe Star BrisbaneThe Star Gold Coast
Share16Share3
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.

Current Issue

Editorial – Flipping the script

Editorial – Flipping the script

by Ben Blaschke
Thu 28 Aug 2025 at 12:30

This month represents an important milestone for Inside Asian Gaming as we launch IAG EXPO – an expansion of the...

Asia market roundup

Asia market roundup

by Ben Blaschke
Thu 28 Aug 2025 at 12:26

Inside Asian Gaming takes a deep dive into the state of Asia-Pacific’s key gaming markets: who’s hot, who’s not and...

Rewriting the rules

Rewriting the rules

by Newsdesk
Thu 28 Aug 2025 at 11:43

IAG EXPO, taking place at Newport World Resorts from 8 to 10 September, is not your usual trade show. IAG...

Test of character

Test of character

by Newsdesk
Thu 28 Aug 2025 at 11:28

Since its establishment in 1989, Gaming Laboratories International (GLI) has developed into the world’s most trusted name when it comes...

Evolution Asia
Evolution Asia
Aristocrat
GLI
Nustar
SABA
Mindslot
Solaire
Hann
Tecnet
NWR
NWR

Related Posts

Police arrest 100 people after detecting 62 cases of illegal money exchange in joint Macau operation

Police arrest 100 people after detecting 62 cases of illegal money exchange in joint Macau operation

by Pierce Chan
Mon 15 Sep 2025 at 22:58

Police from Macau, Guangdong and Hong Kong detected 62 cases of illegal money exchange and apprehended around 100 people suspected of being part of money exchange gangs as part of a month-long joint operation codenamed “Thunderstorm 2025”. Authorities said that...

Melco wins sustainability awards for “Above and Beyond” strategy

Melco proposes new notes offering, looking to redeem outstanding 2026 notes

by Newsdesk
Mon 15 Sep 2025 at 22:49

Melco Resorts Finance Limited, the Melco Resorts & Entertainment subsidiary that operates City of Dreams Macau, Altira Macau and Mocha Clubs, is proposing to conduct an international offering of senior notes as part of its plan to redeem all outstanding...

PAGCOR executive says technology advancements aiding rise in illegal online gaming operators

PAGCOR executive says technology advancements aiding rise in illegal online gaming operators

by Newsdesk
Mon 15 Sep 2025 at 22:25

The rapid advancement of technology within the gaming industry is driving a proliferation of illegal online operators by creating an unstable environment in which legitimate businesses can struggle, according to PAGCOR Vice President for Human Resource and Development Group, Dr...

Comtrade Gaming to expand reach of in-house studio CG Games via partnership with Interwetten

Comtrade Gaming to expand reach of in-house studio CG Games via partnership with Interwetten

by Newsdesk
Mon 15 Sep 2025 at 22:05

Comtrade Gaming, a leading provider of advanced gaming technology, has announced a new partnership with online gaming provider Interwetten through which CG Games – Comtrade Gaming’s in-house game studio – will be integrated into Interwetten’s casino offering. This, Comtrade said,...

Your browser does not support the video tag.


IAG

© 2005-2025
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE
  • 中文

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • 中文
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2025
Inside Asian Gaming.
All rights reserved.

  • 中文
  • English