Star Entertainment today announced to shareholders that it has narrowly avoided the collapse of plans to sell its stake in the $4bn Queen’s Wharf hotel and casino complex known as Destination Brisbane Consortium.
The casino operator owns 50 per cent of the complex with Hong Kong investors, Chow Tai Fook Enterprises and Far East Consortium, looking to acquire 25 per cent respectively.
This announcement comes a week after The Star told shareholders the pair had threatened to exit the deal, taking effect 7 July.
“Since the recent general meeting, the parties have continued to negotiate with a view to finalising the long form documents but, as of this morning, have not reached an agreement on the outstanding commercial issues,” Star Entertainment said last week.
Today the company notified shareholders that they had extended the deadline for the deal to 31 July.
The announcement detailed that failure to secure a deal at the revised termination date will force the company to repay the Hong Kong investors close to $37m.
“The Star must repay $10 million of proceeds it received from the Joint Venture Partners. This amount is payable within 30 days of today’s date,” read the ASX announcement.
It continued: “The Star must reimburse the Joint Venture Partners for its share of equity contributions that have been made by the Joint Venture Partners to DBC since 31 March 2025. This amount is currently anticipated to be approximately $26.5 million and is payable within 60 days of today’s date.”
The deal was first struck in March this year, with the joint venture partners to take over Star Entertainment’s stake in the Brisbane project for $53m.
It came as the company looked to rid itself of the $1.6bn debt associated with the complex and focus the attention on its Sydney and Gold Coast venues.
Since Star Entertainment announced in early April that US casino giant Bally’s would acquire a 56.7 per cent stake in the company worth $300m, the joint investors have expressed concerns over unresolved commercial terms and increased financial risks missing a 30 April deadline to sign the deal.
At the end of last month, shareholders of Star Entertainment overwhelmingly voted in favour of the US operators’ investment in the company, after being warned about The Star’s ability to continue as a going concern.
The company today said it will provide an update if there are further material developments with respect to its negotiations.