A deal to offload its 50% stake in the AU$3.6 billion (US$2.4 billion) The Star Brisbane integrated resort at Queen’s Wharf is still on the table for Star Entertainment Group after revealing Monday that its Hong Kong partners have granted another month to complete long form documentation.
A week after Star announced that Chow Tai Fook Enterprises and Far East Consortium – which each hold a 25% stake in the Destination Brisbane Consortium (DBC) – were planning to step away from an agreement to acquire Star’s entire interest, the company said via a filing on Monday morning that negotiations would now continue until the end of the month.
However, the new 31 July deadline shapes as a critical one with the embattled Australian casino operator due to pay back AU$36.5 million (US$23.9 million) to Chow Tai Fook and Far East Consortium should negotiations again stall.
According to Star, although the provisions of the original Heads of Agreement first signed in March remain in place while talks continue, it will be obliged to make two payments to its joint venture partners if long form documents are not entered into by the revised termination date. These include the repayment of AU$10 million (US$6.5 million) of proceeds it received from the partners back in March, repayable within 30 days of today’s date, and another AU$26.5 million (US$17.3 million) representing its share of equity contributions that have been made by the partners to DBC since 31 March 2025, payable within 60 days of today’s date.
Star said that negotiations are progressing “with a view to finalizing long form documents”.
In a Hong Kong Stock Exchange filing early Monday morning, Far East Consortium revealed that discussions between the three parties over the past week had been conducted with the mutual aim of reaching agreement on detailed commercial terms. These discussions, it said, had focused on matters principally relating to the orderly transition of the management of the Queen’s Wharf Brisbane project in order to ensure certainty for the joint venture partners and other stakeholders upon Star’s exit.
Far East added that it and Chow Tai Fook have “reached in principle agreement with The Star on the detailed commercial terms of, among others, the proposed transition arrangement.”
Queen’s Wharf, now known as The Star Brisbane, opened in August 2024 – almost two years late than had been originally planned.
It remains unclear what affect another breakdown in negotiations would have on a AU$300 million (US$195 million) rescue package from Bally’s Corp and Investment Holdings that was approved by shareholders last month.
While it would place further financial pressure in Star, Bally’s chairman Soo Kim has repeatedly stated – including in a recent interview with Inside Asian Gaming – that his preference is to keep the company’s Sydney, Gold Coast and Brisbane assets together.
Of more concern to Kim is a potentially massive fine to be issued by AML watchdog AUSTRAC that could make the company insolvent and render any rescue package meaningless.
Star’s agreement with its Hong Kong partners will, if it proceeds, see the company offload its entire Brisbane interest in exchange for AU$56 million (US$36.6 million) in cash plus its Hong Kong partners’ respective 33% stakes in two hotel and residential towers – Dorsett and Andaz – at The Star Gold Coast. This would lift Star’s interest in each tower to full ownership.
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