Less than two weeks after an initial agreement collapsed, Australia’s Star Entertainment Group has confirmed it will offload its 50% stake in Queen’s Wharf Brisbane after entering into binding long-form documentation with its Hong Kong partners.
In an ASX filing, Star it would dispose of its interest in the Queen’s Wharf ownership entity Destination Brisbane Consortium (DBC) to Chow Tai Fook Enterprises and Far East Consortium and ultimately transition management of the casino at The Star Brisbane to a replacement operator. The Hong Kong partners currently hold 25% each of DBC.
Star will in turn assume the combined 67% stake currently held by Chow Tai Fook and Far East Consortium in two hotel and residential towers located at The Star Gold Coast.
According to information contained in Tuesday’s filing, the long-form documentation supersedes the previous Heads of Agreement reached with the joint venture partners in March, although Star noted that the key aspects of the transaction are “materially consistent” with that Heads of Agreement.
It also confirmed that it had received the consent US casino operator Bally’s Corporation and Bruce Mathieson’s Investment Holdings Pty Ltd, who recently invested a combined AU$300 million rescue package into Star in return for a controlling stake in the company.
Star said the transaction will complete in two stages – exiting DBC by 30 November 2025 and then completing the transfer back and forth of other assets during 2H26, subject to a separate set of conditions precedent.
Under the terms of the agreement, Star will not be required to fund any equity contributions in relation to DBC with effect from 31 March 2025 – saving at least AU$212 million on payments – and will be released from its parent company guarantee in relation to the DBC debt facility, currently drawn at AU$1.4 billion.
Star will also be entitled to an earn-out payment in 2030 of up to AU$225 million based on the lower of AU$225 million or 50% of DBC’s pro forma equity value, it explained.
The transaction remains subject to approval from lenders and the Queensland State Government.
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