The Star Entertainment Group’s efforts to offload its 50 per cent stake in Destination Brisbane Consortium, including the Star Brisbane Casino, to its joint venture partners, Chow Tai Fook Enterprises Limited and Far East Consortium International, has now officially fallen through.
The Australian casino operator has confirmed it failed to reach an agreement with its partners on ‘a number of outstanding commercial issues.’
The Star stated: “The parties have been unable to reach agreement on a number of outstanding commercial issues, which in turn prevent the finalisation of long form documents. The Star proposed to
the Joint Venture Partners an extension of the HoA termination date to 6 August 2025 to allow further
time to conclude negotiations. However, the proposed extension by The Star was not accepted by the
Joint Venture Partners. Accordingly, the HoA Termination Notice (which was extended to 31 July 2025)
has taken effect and as a result, the HoA has been terminated with effect from today’s date.”
A number of consequences arise for The Star as a result of the HoA being terminated, with most obviously, The Star retaining its 50 per cent equity interest in DBC and its 1/3 equity interest in DGCC. The Star will also retain the Treasury Brisbane hotel and car park and its 50 per cent equity interest in the Charlotte Street Car Park.
The Star must repay $10m of the proceeds it received from the Joint Venture Partners. This
amount is payable by 6 August 2025 and 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 $31m and is payable by September 5 2025.
The original casino management agreement for The Star Brisbane (CMA) remains on foot and
The Star continues to be the operator of The Star Brisbane under the CMA. Under the CMA, The Star also receives a casino management fee as calculated under that agreement.
The $35m prepayment to The Star of its share of the net sale proceeds for apartments in the Tower 2 development on the Gold Coast survives termination of the HoA.
The operator added: “The Star is continuing to engage with the Joint Venture Partners and will provide an update if there are any material developments regarding the parties’ respective interests in DBC and DGCC. Given the termination of the HoA, The Star is considering what alternative options may be available to it in relation to its 50 per cent equity interest in DBC, along with the Treasury Brisbane hotel and car park and its 50 per cent equity interest in the Charlotte Street Car Park.”
The post The Star’s deal to exit its Brisbane assets has failed due to ‘outstanding commercial issues’ appeared first on G3 Newswire.
The Star Entertainment Group’s efforts to offload its 50 per cent stake in Destination Brisbane Consortium, including the Star Brisbane Casino, to its joint venture partners, Chow Tai Fook Enterprises Limited and Far East Consortium International, has now officially fallen through. The Australian casino operator has confirmed it failed to reach an agreement with its…
The post The Star’s deal to exit its Brisbane assets has failed due to ‘outstanding commercial issues’ appeared first on G3 Newswire.