Star Entertainment Retains Stake in Queen’s Wharf
Australia’s Star Entertainment Group will retain its 50% share in the AU$2.9 billion Queen’s Wharf Brisbane project, following the official withdrawal of its Hong Kong joint venture partners from their acquisition agreement early in August this year.
The initial plan involved the Far East Consortium and Chow Tai Fook Enterprises purchasing the Star’s stake for AU$53 million. Unfortunately, negotiations collapsed as deadlines came and went without a deal, in yet another body blow for the financially embattled Australian casino magnate.
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Returning to Star’s precarious situation, the termination of the acquisition agreement holds serious implications for the casino operator. Star is required to repay AU$10 million within one month following termination and an approximate AU$31 million more related to equity contributions made by its partners since 31 March 2025. Should they fail to fulfil these obligations, it could cost them their one-third interest share in the Tower 1 hotel at Gold Coast Dorsett.
Star must also manage its share of Queen’s Wharf’s substantial debt facility of roughly AU$1.4 billion. This is in addition to preparing for additional equity contributions estimated at AU$200 million needed to complete the development, which has been dragging on for years.
The financial pressure related to Queen’s Wharf Brisbane comes as Star Entertainment grapples with significant losses over the previous two financial years. Reportedly, the company suffered an AU$2.44 billion loss for FY 2022-23, followed by another AU$1.69 billion loss for FY 2023-24. Nevertheless, Star maintains operational control over Brisbane’s casino management agreement, which is a crucial component of its business strategy amidst current challenges.
The collapse of the Queen’s Wharf acquisition represents more than just a failed deal, though. It underscores ongoing difficulties faced by Australia’s casino industry amid increased regulatory scrutiny and financial pressures.
The approval of an AU$300 million strategic investment from US gaming giant Bally’s has perhaps turned Star’s future prospects into a slightly better light. But, of course, the question remains if that will be enough to change Star’s fate.
Star Entertainment noted it will go on to negotiate with its Hong Kong partners outside of the formal Heads of Agreement. This will happen through a combination of “legally binding documentation as well as more flexible joint venture arrangements and other methods” for addressing issues surrounding overall development progress. The casino operator has said that they will issue updates on their progress as soon as any significant changes occur.
The Star Entertainment casino group will remain on as the casino management for the Star Brisbane for another year, ensuring continuity in operations. The company’s substantial interest in Brisbane means it will have its work cut out managing multiple issues on one of the city’s flagship projects. They will have to juggle their own financial issues and operational challenges in order to survive long-term in an increasingly competitive gaming landscape in Australia.
Queen’s Wharf Brisbane is likely to be a landmark feature in the future of Brisbane’s tourism and entertainment industry. All stakeholders will keep a critical, close eye on how Star Entertainment plays into this rare opportunity.
