In Bold Move, Star Sells Queen’s Wharf Stake to Stay Afloat

Star Entertainment has officially announced a significant restructuring move in a bid to avoid insolvency, confirming today (7 March) that it will sell its 50% stake in Brisbane’s Queen’s Wharf project and consolidate ownership of key assets on the Gold Coast.

Star Unloads Queen’s Wharf Stake for AU$53 Million

In an ASX filing, Star revealed it will offload its share in the Queen’s Wharf Brisbane joint venture to existing partners Chow Tai Fook (CTF) and Far East Consortium (FEC) for AU$53 million (approx. £25.8m/€30.8m/US$33.4m). The deal includes:

• AU$35 million upfront

• AU$10 million due by end of March

• AU$8 million payable by 30 November or upon completion of the Andaz tower at the Gold Coast—whichever comes first.

By exiting Queen’s Wharf, Star eliminates any future capital contributions to the project—previously estimated at AU$212 million—and is released from its parent company guarantee on the project’s AU$1.4 billion debt facility.

Although Star will remain the operator of Queen’s Wharf until March 2026, it will earn AU$5 million per month during this transition. Should the arrangement extend, the monthly fee will increase to AU$6 million.

The development’s original casino management agreement has also been terminated.

Strategic Pivot to Gold Coast Ownership

In a major shift, Star will acquire CTF and FEC’s stakes in the non-gaming assets of its Gold Coast property. This includes:

• The 313-room Dorsett Hotel

• The 202-room Andaz Tower (under construction)

This effectively gives Star full ownership of the Gold Coast resort, positioning it as the company’s new cornerstone.

Star retains development rights on the 6.7-hectare site and existing plans for up to three additional towers. Although CTF and FEC will keep development rights to the next tower, Star can buy those out for AU$17 million.

Meanwhile, CTF and FEC will take over:

• The Treasury Hotel building

• Two parking garages in Brisbane

This marks Star’s complete exit from Brisbane, following its AU$67.5 million sale of the Treasury Casino building to Griffith University last year.

Financial Lifeline from King Street Capital

Alongside asset restructuring, Star has secured a AU$250 million bridge loan from US-based King Street Capital Management. The funds can be accessed by 29 April, pending conditions such as:

• Intercreditor agreement with existing lenders

• Regulatory approvals for using Star Gold Coast as security

Star also referenced a refinancing proposal from another lender, potentially offering up to AU$940 million in total debt capacity. However, this deal remains non-binding and not guaranteed.

Notably, Star acknowledged that Oaktree Capital’s AU$650 million debt offer, previously reported in February, failed to meet its required conditions.

Future Clouded by Uncertainty

Despite aggressive moves to restructure and raise capital, Star remains in a precarious position:

• Its shares remain suspended, due to failure to file financial results on time.

• The company awaits a third ruling on its Star Sydney casino licence, following two inquiries deeming it unsuitable. A third negative ruling after 31 March could lead to full licence revocation.

• Star has already sold Sydney’s event centre for AU$60 million as part of its asset fire-sale.

• It is also under investigation by Austrac, Australia’s financial crimes authority. A substantial fine is expected.

CEO Steve McCann acknowledged the tough road ahead:

“The company still faces various risks, including the availability of funding, the ability to restore our licences… resolving litigation from historical issues, and managing a business in continuing lower revenue and negative cashflow.”

Interest from Potential Buyers

Star’s situation has not gone unnoticed. Reports suggest that US casino giant Bally’s Corporation recently sent representatives to meet with Star and inspect its assets, possibly indicating interest in a future acquisition.

Still, until the company regains regulatory trust and stabilizes finances, its path forward remains uncertain.

“This transaction is an important milestone for the company and contributes to providing a potential pathway towards financial viability,” McCann said, highlighting confidence in Star’s Gold Coast strategy.
“We are excited about our future in the Gold Coast.”