Star Entertainment Group Limited announced on Friday that its planned sale of a 50 percent stake in the Destination Brisbane Consortium (DBC), operator of AU$3.6 billion ($2.3 billion) Queen’s Wharf Brisbane, to joint venture partners Chow Tai Fook Enterprises Limited and Far East Consortium International Limited has collapsed, according to a filing with the Australian Securities Exchange (ASX).
The termination of the “heads of agreement” (HoA) leaves Star responsible for reimbursing AU$41 million ($26.4 million) to its partners and retaining significant financial obligations, contributing to a record-low share price of AU$0.09 ($0.06) at market close, down by 16 percent.
The failed deal stems from unresolved ‘outstanding commercial issues’ that prevented the finalization of long-form documents, despite Star’s proposal to extend negotiations until August 6th, 2025, which was rejected by the joint venture partners. As a result, Star retains its 50 percent equity interest in DBC and a one-third interest in the Destination Gold Coast Consortium (DGCC), along with ownership of the Treasury Brisbane hotel, car park, and a 50 percent stake in the Charlotte Street Car Park.
The company must repay AU$10 million ($6.4 million) by August 6th, 2025, and an estimated AU$31 million ($19.9 million) by September 5th, 2025, for equity contributions made by its partners to DBC since March 31st, 2025. Failure to meet these obligations could result in Star transferring its one-third interest in the Dorsett hotel at the Gold Coast to the partners.
Star remains liable for its share of DBC’s AU$1.4 billion ($900 million) debt facility, due for refinancing in December 2025, and future equity contributions estimated at AU$200 million ($128.6 million). The company continues to operate The Star Brisbane under the existing casino management agreement, receiving a management fee, while a AU$35 million ($22.5 million) prepayment for Gold Coast apartment sale proceeds survives the HoA termination. The joint venture partners are expected to reimburse Star approximately AU$1 million ($640,000) for contributions to DGCC since March 7th, 2025.
The company stated it is ‘considering what alternative options may be available to it in relation to its 50 percent equity interest in DBC’ and will provide updates on any material developments regarding the partnerships.
