**Star Entertainment** was unable to finalize a deal to sell its **Queen’s Wharf** precinct in Brisbane to its partners, Chow Tai Fook Enterprises and Far East Consortium, resulting in a $41 million payout due to the collapse of the agreement.
The deal fell apart as the parties involved could not agree on the necessary commercial terms. As a result, Star retains its **50% stake in the $3.6 billion project** through the **Destination Brisbane Consortium** (DBC), along with a **1/3 interest** in the Destination Gold Coast Consortium.
If a complete agreement is not reached by July 31, Star Entertainment must **pay $41 million to its former partners**. Moreover, the company will continue to bear its share of the **$1.4 billion DBC debt facility** and is required to **invest approximately $200 million** to maintain financial support for the Brisbane project.
After declining Star’s last-minute proposal to extend the final negotiation date to **August 6**, Chow Tai Fook Enterprises and Far East Consortium officially withdrew from the agreement.
Should Star Entertainment fail to **repay $10 million** previously received from its partners, and **return $31 million** in equity contributions to DBC since March, it stands to lose its 1/3 stake in the Dorsett hotel tower on the Gold Coast.
Following the termination of this deal, **Star’s shares fell by 9.1%, trading at 10¢**. This decline reflects the market’s concerns about the financial consequences of the deal’s failure and Star’s ongoing financial obligations.
**Crown Resorts** has been identified as a potential successor to take over Star’s role in the Queen’s Wharf precinct, bolstered by Crown’s recent compliance with strict probity and compliance standards enforced by regulators across other Australian states. This could represent Crown’s inaugural entry into Queensland.