Star Entertainment Group’s Hong Kong partners have officially closed the door on a deal that would have seen them acquire Star’s 50% stake in their AU$3.6 billion Queen’s Wharf Brisbane development.
In a Friday release, Star confirmed that Chow Tai Fook Enterprises and Far East Consortium had opted to terminate the Heads of Agreement (HoA) in relation to the takeover deal after rejecting a proposal to continue negotiations by further extending the HoA termination date from 31 July to 6 August.
As a result of the HoA Termination Notice taking effect, Star will now retain its 50% stake in Queen’s Wharf Brisbane operator Destination Brisbane Consortium (DBC), its ownership of the Treasury Brisbane hotel and car park and its 50% equity interest in another nearby car park. Chow Tai Fook and Far East Consortium’s DBC stake will remain at 25% each.
Star will also be required to repay AU$10 million in proceeds it received from its Hong Kong partners after the original HoA was signed and reimburse them for its share of equity contributions that have been made by the partners since 31 March 2025 – estimated at around AU$31 million. Star’s 33% interest in a hotel tower at The Star Gold Coast will serve as collateral should the company fail to make those repayments by 5 September 2025.
Likewise, Star will continue to be responsible for its share of future equity contributions to DBC, estimated at around AU$200 million, with additional equity possibly required as part of the refinancing of the DBC debt facility which is due to expire in December 2025.
Star noted that its original casino management agreement for The Star Brisbane will remain in place with the company to continue receiving a casino management fee.
“The Star is continuing to engage with the Joint Venture Partners and will provide an update if there are any material developments regarding the parties’ respective interests in DBC and DGCC (Destination Gold Coast Consortium),” it said in a filing.
“Given the termination of the HoA, The Star is considering what alternative options may be available to it in relation to its 50% equity interest in DBC.”
The collapse of Star’s Brisbane deal comes just a month after shareholders approved an AU$300 million rescue package led by US casino operator Bally’s Corp. That rescue package was unrelated to Star’s Brisbane negotiations and the collapse of the HoA is unlikely to deter Bally’s going forward with the US firm’s chairman, Soo Kim, recently stating his desire for Star to retain all of its existing assets.
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