Star Entertainment’s Brisbane Casino Deal Collapses

The Star Entertainment Group (SEG) has announced that its proposed deal to offload its stake in the Brisbane Queen’s Wharf hotel and casino complex has collapsed, leaving the casino operator facing around $41 million in payments to investors.

In a statement to the ASX last week, SEG said its Heads of Agreement (HoA) deal with its joint venture partners – Chow Tai Fook Enterprises Limited and Far East Consortium International Limited – had been terminated.

The statement said: “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.

“The Star proposed to the Joint Venture Partners an extension of the HoA termination date to 6 August 2025 to allow further time to conclude negotiations. However, the proposed extension by The Star was not accepted by the Joint Venture Partners.

“Accordingly, the HoA Termination Notice (which was extended to 31 July 2025) has taken effect and as a result, the HoA has been terminated with effect from today’s date.”

The collapse of the deal exposes SEG to a number of repayments and equity responsibilities, which will add to the financial woes of the group. SEG must repay $10m of proceeds it received from the Joint Venture Partners by 6 August 2025.

In addition, SEG must reimburse the Joint Venture Partners for its share of equity contributions that have been made by the Joint Venture Partners to Destination Brisbane Consortium (DBC) since 31 March 2025. This amount is currently anticipated to be approximately $31m (based on an estimate of amounts paid to date) and is payable by 5 September 2025.

SEG will also retain its 50% share of the DBC debt facility, which is currently around $1.4bn, and will continue to be responsible for its share of future equity contributions to DBC, estimated to be approximately $200m. Additional equity may also be required as part of the refinancing of the DBC debt facility, which is due to expire in December 2025.

The ASX statement did say that SEG “is continuing to engage with the Joint Venture Partners and will provide an update if there are any material developments regarding the parties’ respective interests in DBC and DGCC”.

The group added: “Given the termination of the HoA, The Star is considering what alternative options may be available to it in relation to its 50 per cent equity interest in DBC, along with the Treasury Brisbane hotel and car park and its 50 per cent equity interest in the Charlotte Street Car Park (Festival).”