Latest news with #QueensWharf
The Australian
an hour ago
- Business
- The Australian
Star Entertainment's Brisbane casino sale to Hong Kong partners fails
The sale of Star Entertainment Group's Queen's Wharf precinct to its Hong Kong investment partners has collapsed, putting the casino company under intense pressure as it must refinance its share of $1.4bn of debt tied to the Brisbane project. The listed company must also make a $41m payout to the two Asian groups — Chow Tai Fook and Far East Consortium — by early September amid signs their relationship had soured as Star sought out rival groups, including the Blackstone-owned Crown Resorts, to run the casino. Star on Friday flagged it could undertake a series of asset sales as it scrambles to fund both that payment and deal with a refinancing of the Destination Brisbane Consortium vehicle which controls the Queen's Wharf project. In the wake of the shock termination, Star noted that talks were continuing with the deep-pocketed pair of Asian investors. However, it said that it was also considering what alternative options may be available in relation to its 50 per cent interest in DBC, along with the Treasury Brisbane hotel and car park and its 50 per cent interest in the Charlotte Street car park. The Treasury Brisbane hotel was quietly marketed last year and came close to selling to a Thai group ahead of the larger proposal by Chow Tai Fook and the Far East Consortium emerging. Another group, Warren Ebert's Sentinel operation, looked at buying the car park that Star fully controls, industry sources said. Each of the sales could have raised about $45m at the time, according to people familiar with the assets. But they may not trade so favourably now given Star's diminished state. Star shares dropped by 1.8c to a record low of 9.2c. Chow Tai Fook and Far East Consortium, which currently each hold 25 per cent of Queen's Wharf, had agreed in March to take over Star's 50 per cent share, but negotiations faltered and hit crisis point last month with formal termination action. In its quarterly activities report, released Wednesday morning, Star warned the deal's failure would mean it had a week to repay $10m of the $45m it had already received from its partners and reimburse another $26.5m by September 5. It was hopeful of negotiating 'long form documents' but its efforts to gain a further extension until August 6 from the Hong Kong pair were brushed aside. As a result of the deal's failure, the listed company will end up keeping its one-third interest in its Gold Coast assets, as well as the Treasury hotel and car park, and its 50 per cent interest in a Charlotte Street car park. But, Star must repay $10m to its HK partners by August 6 and also reimburse them for their share of equity contributions to the Brisbane assets since the end of March. This amounts to $31m and is payable by September 5. To the extent this is not repaid, Star must transfer its one third interest in a hotel on the Gold Coast to the HK groups. They are also required to reimburse Star but only to the tune of about $1m for its contributions on the Gold Coast project. Star faces larger problems over the parent guarantee in relation to its 50 per cent share of the Destination Brisbane Consortium debt facility, for which the total current drawn balance is about $1.4bn. That will now remain on foot due to the deal's failure. Star will also continue to be responsible for its share of future equity contributions to DBC, estimated to be approximately $200m. More equity may also be required as part of the refinancing of the DBC debt facility, which is due to expire in December 2025. Listed investors, however, are wary of pouring further funds into the company after two huge discounted equity raisings, and a potential $300m rescue deal by US-based casino operator Bally's is under regulatory scrutiny. Star Entertainment shareholders in June had overwhelmingly approved the $300m rescue deal after being warned they would get nothing if the company collapsed into liquidation. Chair Anne Ward told a shareholder meeting to approve the transaction as the beleaguered company had 'exhausted all options' to secure funding for its survival and the Bally's deal was the only offer on the table. While the white knight may now review its strategy, that deal could still see Bally's and pubs billionaire Bruce Mathieson's Investment Holdings take a majority stake in the casino company. Star said it was continuing to engage with its HK joint venture partners and will provide an update if there are any material developments regarding their respective interests in DBC and Destination Gold Coast Consortium. Ben Wilmot Commercial Property Editor Ben Wilmot has been The Australian's commercial property editor since 2013. He was previously a property journalist with the Australian Financial Review. Companies Billionaire Laurence Escalante has secured a $1bn buyout of Virtual Gaming Worlds shareholders, with plans to move his $3.2bn gaming empire to tax haven Guernsey. Companies Business as usual is not an option for Steve McCann. The Star boss needs to come clean on how he plans to pay for the wave of bills now coming for the casino.
Yahoo
7 hours ago
- Business
- Yahoo
Embattled casino's lifeline deal collapses
A major property deal involving casino operator Star Entertainment has officially failed, leaving the struggling company on the hook for $40m of repayments. 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. More to come Sign in to access your portfolio
Reuters
8 hours ago
- Business
- Reuters
Star Entertainment's Brisbane casino deal implodes; shares tank
Aug 1 (Reuters) - Star Entertainment said a planned sale of a half stake in its A$3.6 billion ($2.32 billion) Brisbane resort failed after its Hong Kong investors refused a request to extend talks, sending its shares sharply lower. Shares in the embattled Australian casino operator fell as much as 9.1% to A$0.10, hitting their lowest level since May 5, and were set for their biggest single-day percentage drop since June 23. The collapse of the Queen's Wharf deal marks a major setback for Star, which — alongside its Hong Kong partners — has poured in significantly more capital than initially expected to complete the project. The development is now burdened with around A$1.4 billion in debt. The firm is now urgently weighing its options for the 50% stake in Queen's Wharf after efforts to finalise long-form deal documents broke down. A last-ditch request for an extension was rejected by the Hong Kong partners, who also jointly own two-thirds of Star's Gold Coast casino and each hold 2.8% of the company. "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," Star said in a statement. But the failed deal carries costs. Star must repay A$10 million by August 6 and reimburse its partners about A$31 million by September 5 for past equity contributions. Originally announced in March, the now-defunct deal gave Star control of two towers on the Gold Coast and unlocked a critical A$53 million funding lifeline, seen as vital to keeping the company afloat. Queen's Wharf is the newest addition to Star's trio of integrated resorts and is backed by its Hong Kong shareholders. ($1 = 1.5547 Australian dollars)
News.com.au
8 hours ago
- Business
- News.com.au
Star Entertainment's Brisbane Queen's Wharf deal collapses
A major property deal involving casino operator Star Entertainment has officially failed, leaving the struggling company on the hook for $40m of repayments. 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.
Yahoo
8 hours ago
- Business
- Yahoo
‘Unlikely': Embattled Star's fresh setback
Embattled casino operator Star Entertainment has announced the sale of its Queen's Wharf precinct is 'unlikely' to go through by July 31. In the latest blow, Star told the ASX that the sale of the hotel and entertainment complex to Hong Kong investment partners was on the rocks again. RELATED NAB's 'clear' $55 million message after controversial branch closures Australia's 'ancient enemy' returns sparking major Centrelink warning Age Pension warning for 4.3 million Aussies facing superannuation nightmare Chow Tai Fook Enterprises and Far East Consortium each own 25 per cent of the Queens's Wharf and announced back in March they would buy Star's remaining 50 per cent in the development. But in early July, the deal threatened to collapse before Star Entertainment announced that it would repay $10m of the proceeds from the joint venture partners if an agreement wasn't reached by July 31. In its quarterly activities report released on Wednesday, Star said the deal was 'unlikely' and it would have to pay back $10m of the $45m it had received from the joint venture before paying an additional $26.5m by September 5. 'However, in The Star's view, based on the current status of discussions, it is unlikely that the parties will be in a position to finalise long-form documents by 31 July 2025,' Star Group said. 'The consequences of this potential outcome are discussed below, unless the parties agree otherwise.' Star Entertainment results also showed the business lost more money in the June quarter. The Star lost $27m in the last quarter compared with $24 in the previous quarter, with the Queen's Wharf being responsible for $15m in lost earnings. Revenue came in slightly higher up to $270m in the fourth quarter to June 2025 compared with $268m in the previous quarter. As of June 30, 2025, Star had $234m in cash and $269m in cash equivalents, an improvement on the $44m it had on March 31. The improving cash balance comes after US casino giant Bally's lobbed a $300m takeover bid for majority control of Star on April 7. Star Entertainment received $100m on April 9 before receiving a further cash injection of $133m on June 27. It will receive the remaining $67m on October 7. Error in retrieving data Sign in to access your portfolio Error in retrieving data
