Australia’s embattled The Star Entertainment says its Queen’s Wharf Brisbane project has been pushed back to April 2024, as the project ‘has not been immune from the types of pressures that other major infrastructure projects across Australia have encountered’.
In a stock exchange filing on Monday, Star Entertainment updated that the group of investors ‘has advised a change to the expected opening date of the development’. The project was scheduled to open in the second half of this year.
“We are disappointed, but this transformational development for Brisbane has been eight years in the making already, and it will be well worth the wait. Queen’s Wharf will be a game-changer for a city that continues to attract the eyes of the world as we charge towards the 2032 Olympic and Paralympic Games,” said The Star’s Group CEO and Managing Director, Robbie Cooke.
The firm updated that several areas have been completed, including numerous dining, entertainment, and gaming areas on Levels 5 and 6 of the resort. ‘The third and final Sky Deck bridge section was moved into place on Friday, 2 June 2023, allowing the Sky Deck lift and connection to take place in the coming weeks. The completed Sky Deck will connect all four towers of the Queen’s Wharf development,’ notes the company.
The Sky Deck will showcase a 250-meter open-air rooftop runway of bars and restaurants, provide panoramic views from 100 meters above the Brisbane River, and have capacity for up to 1,500 people.
The Queen’s Wharf Brisbane project is developed by the company called Destination Brisbane Consortium (DBC), which is a privately owned and operated joint venture between The Star and its partners: Hong Kong-listed Chow Tai Fook Enterprises and Far East Consortium. Star Entertainment has a 50 percent stake, while CTF and FEC hold the remaining 50 percent.
The overall project had previously been estimated at AU$3.6 billion ($2.37 billion), some AU$2.6 billion ($1.71 billion) of which involved the integrated resort. However, given bad weather and the pandemic contributed to construction delays, pushing estimates for the IR segment cost up to AU$2.9 billion ($1.91 billion).
The company’s recent woes have also forced it to raise some $531 million in equity, including from its Queen’s Wharf partners, in order to prop-up the company as it forges ahead.
The Star Entertainment announced in March that the company is anticipating losses of up to $1.1 billion due to alleged anti-money laundering malpractice lawsuits and largely because of potential changes to the tax regime in New South Wales, while having reported a 1H23 loss of $861 million.
Later, the firm also stated in April that it would be laying off some 500 full-time employees and implementing salary freezes as it attempts to reduce its operating expenditure by over AU$100 million ($67.4 million) due to its ‘rapid deterioration in operating conditions’.
Both its New South Wales and Queensland operations are currently under independent management, as mandated by the authorities, as ongoing inquiries continue.
