A deal that would have seen Star Entertainment Group’s 50% stake in the multi-billion-dollar Queen’s Wharf Brisbane development acquired by its Hong Kong partners looks unlikely to proceed with the parties having failed to finalize necessary long-form documentation before their 31 July deadline.
In a quarterly update released to the market on Wednesday, Star said that while it continues to negotiate long-form documents with Chow Tai Fook and Far East Consortium – who currently each hold a 25% stake in the Brisbane IR – “in The Star’s view, based on the current status of discussions, it is unlikely that the parties will be in a position to finalize long form documents by 31 July 2025.”
Unless the parties agree otherwise, failure to reach an agreement on the deal will see Star required to repay AU$10 million (US$6.5 million) of proceeds it received from the partners back in March and another AU$26.5 million (US$17.3 million) representing its share of equity contributions that have been made by the partners to Brisbane operating entity Destination Brisbane Consortium since 31 March 2025, when the takeover proposal was first put forward.
Such an outcome would represent another financial hit for Star, which also revealed that trading conditions at its three casinos continue to deteriorate. The company suffered an EBITDA loss of AU$27 million (US$17.6 million) in 2Q25, widened from the AU$23 million (US$15.0 million) loss reported in Q1. Revenue at its Sydney and Gold Coast casinos was largely inline quarter-on-quarter.
“The result for the period reflects continued softness in operating performance due to the ongoing challenging operating environment including the impact of mandatory carded play and cash limits in NSW and stricter regulatory requirements across all properties,” the company explained.
On a positive note, Star said its available cash as of 30 June 2025 was AU$234 million (US$152 million) as compared to just AU$44 million (US$28.6 million) in the March quarter. The company has received a recent cash injection after shareholders voted in favor of an AU$300 million rescue package led by US casino operator Bally’s Corp.
RelatedPosts
