Star Entertainment's Brisbane Queen's Wharf deal collapses
Star flagged the likely failure of the deal on Wednesday, and on Friday morning share trading was paused as negotiations over the newly opened Queen's Wharf casino in Brisbane fell apart.
'As of this morning, 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,' an announcement to the ASX said.
Star proposed to extend the deadline – again – for another week, but Chow Tai Fook Enterprises and Far East Consortium International declined, the announcement read.
Star had been trying to sell its majority stake in the Queen's Wharf precinct to the Hong Kong-based business partners.
As a consequence of the deal falling through, Star Entertainment must repay the partners about $41m, the ASX announcement said – $10m by August 6, and $31m by September 5.
The fallout also leaves Star liable for about $1bn of debt.
Star said it would look for alternative options for the 50 per cent stake it was trying to offload. Chow Tai Fook and Far East own 25 per cent each.
If the Star cannot pay the $41m in the next five weeks, the partners will take ownership of Star's one-third share of the Gold Coast tower that hosts the Dorsett Hotel.
An interim deal announced in March gave Star a $53m lifeline as the business was running dangerously low on cash. This deal gave Star control of two towers on the Gold Coast.
As talks between Star, Chow Tai Fook and Far East hit speed bumps, the Hong Kong-based partners held talks with alternative casino operators, including Crown and SkyCity.
The Queen's Wharf opened in August 2024, two years late. Debt on the project has ballooned to $1.4bn.
In June, Star shareholders approved a $300m company buyout from US-based Bally's Corp that fended off administrators.
Originally published as Star Entertainment's Brisbane Queen's Wharf deal collapses
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