Deal Finalized for Queen's Wharf Brisbane Casino Resort Sale by Star Entertainment
Star Entertainment Sheds AU$2.6 Billion Queen's Wharf Brisbane Burden
Star Entertainment Group, Australia's largest casino operator, has sold its 50% stake in the $3.6 billion Queen's Wharf Brisbane development to its major shareholders, Chow Tai Fook Enterprises (CTFE) and Far East Consortium (FEC). The deal, valued at AUD 53 million (approximately USD 34.5 million), marks a significant step in Star's efforts to alleviate financial pressures and restructure its business.
The sale, agreed upon in March, removes over AUD 700 million of liabilities from Star’s books and transfers more than AUD 350 million in development costs to CTFE and FEC, who will assume full ownership of the project going forward.
Star's financial relief stems from immediate cash proceeds of AUD 53 million, with AUD 45 million already received and AUD 8 million due by November 30, 2025. Additionally, the company will no longer be burdened with debt payments related to Queen’s Wharf Brisbane, saving at least AUD 212 million in debt payments.
As part of the agreement, Star has acquired the combined 67% position held by Chow Tai Fook and Far East in two hotels and residential towers located at The Star Gold Coast: Dorsett and Andaz. Dorsett Gold Coast boasts 313 hotel rooms, while Andaz offers 202 keys. Star also maintains the first right of refusal for future towers at the Gold Coast complex.
For CTFE and FEC, the acquisition signifies an expansion of their casino and resort footprint in Australia. The buyers will assume substantial development costs and responsibilities previously shared with Star, reflecting an increase in their investment and operational risk within the project. They may also appoint a new operator for the casino assets, as Star will no longer manage the Brisbane property once the transaction is completed.
The transaction is subject to regulatory approvals, including from Bally's, which is one of the two casino operators in Australia with Star. AUSTRAC, the government's financial intelligence agency, is considering an additional fine on the casino in relation to money laundering allegations.
In a separate development, Bally's Corporation has agreed to pay Star AU$300 million for a 57% stake in The Star Sydney and The Star Gold Coast operator. This transaction is also subject to regulatory approvals.
This strategic move by Star Entertainment Group is part of a broader restructuring plan aimed at stabilising its finances while allowing its major investors, CTFE and FEC, to consolidate their holdings in key Australian casino assets.
- Chow Tai Fook Enterprises (CTFE) and Far East Consortium (FEC) are major shareholders of Star Entertainment Group, Australia's largest casino operator.
- Star Entertainment Group has sold its 50% stake in the Queen's Wharf Brisbane development, valued at AUD 53 million, to CTFE and FEC, marking a significant step in Star's efforts to alleviate financial pressures.
- The Crown, another casino operator in Australia, is one of the two regulatory bodies considering the Queen's Wharf Brisbane transaction.
- CTFE and FEC are set to assume full ownership of the Queen's Wharf Brisbane project and will be responsible for the remaining development costs.
- As part of the agreement, Star has acquired a combined 67% position in two hotels and residential towers at The Star Gold Coast: Dorsett and Andaz.
- Bally's Corporation has agreed to pay Star AU$300 million for a 57% stake in The Star Sydney and The Star Gold Coast operator, another casino-related deal.
- The Star Gold Coast's Dorsett hotel offers 313 rooms, while Andaz offers 202 keys, expanding the Far East Consortium and Chow Tai Fook's casino and resort footprint in Australia.
