The Star Entertainment Group (The Star) has entered into a binding long-form documentation with Chow Tai Fook Enterprises Limited (CTFE) and Far East Consortium International Limited (FECI) in relation to assets in Queensland.
CTFE and FECI – together known as the Joint Venture Partners – have been in long-term negotiation with The Star regarding Destination Brisbane Consortium (DBC), which is the owner of the Queen’s Wharf Brisbane Integrated Resort), Destination Gold Coast Consortium (DGCC), the owner of the Gold Coast joint venture assets, and other assets in Brisbane that are owned or partially owned by The Star, including The Treasury Hotel in Brisbane.
The deal looked to have collapsed at the beginning of August, raising major concerns about the repayment and equity responsibilities this left The Star exposed to. But this agreement looks to have put those concerns to bed.
In a statement to the ASX The Star said: “The Transaction [with the Joint Venture Partners] involves The Star disposing of its interest in DBC (and the ultimate transition of the management of The Star Brisbane Integrated Resort to a replacement operator), consolidating its position at the Gold Coast and transferring other Brisbane assets and interests held by The Star to the Joint Venture Partners.
“The binding long form documentation supersedes previous arrangements in respect of the Transaction including the Heads of Agreement with the Joint Venture Partners which was terminated on 1 August 2025.”
The transaction will be completed in two stages, beginning with The Star’s exit from DBC by 30 November 2025. The second stage, covering the remaining assets DGCC and The Treasury Hotel in Brisbane, is expected to close in the second half of 2026, subject to separate conditions.
Each stage requires satisfaction of all necessary conditions, including regulatory approvals, Queensland Government consent for requested accommodations by the Joint Venture Partners, lender approvals, amendments to DBC facility agreements, the release of The Star’s parent company guarantees for DBC, and other third-party consents.
The Star said it has received the consent of its subordinated lenders Bally’s Corporation and Investment Holdings Pty Ltd to support the Transaction on the basis of the executed terms.