Australian gaming operator The Star has finally released some good news, indicating that it has entered into an agreement with its joint venture partners to sell its stake in Queen’s Wharf Brisbane.
According to a filing on Tuesday, The Star has ‘entered into binding long-form documentation’ with its JV partners Chow Tai Fook Enterprises (CTFE) and Far East Consortium (FEC) to dispose of is interest in Destination Brisbane Consortium (DBC).
The filing also indicates that The Star will also be transitioning out of its management of The Star Brisbane Integrated Resort, which will then be run by a ‘replacement operator’.
Previous reports indicated that the CTFE and FEC were in talks with both Crown Resorts and SkyCity as possible future operators.
The deal comes after previous negotiations over the sale collapsed, leaving The Star with millions to pay to the JV partners as well as saddling the company with its portion of debt related to the multi-billion-dollar project.
The current timeline of the sale is split into two parts, with The Star’s exit from the DBC to be finalized by November 30th. The second part of the transition involves the transfer of the remaining interest held by the JV partners in The Star Gold Coast to The Star, which is expected to be finalized some time in the second half of 2026.
The group notes that the completion of both stages depends on approvals, including that by the Queensland State Government. Far East Consortium halted trading early on Monday ahead of the announcement, but resumed trading at 1pm the same day.
In a separate filing by FEC, the company indicated that, while The Star will assume 100 percent ownership of DGCC (Destination Gold Coast Consortium), the JV partners will retain their rights to participate in the development of the next hotel tower in the precinct. The Star can terminate this write if it pays AU$20 million to the JV partners. The hotel tower is expected to house the Andaz hotel brand.
The new deal for between The Star and its JV partners encompasses an AU$18 million ($11.7 million) payment to The Star as well as an ‘Earn Out Payment’ equal to 50 percent of the equity value of DBC or the Maximum Earn Out amount – AU$225 million ($146.28 million).
Looking at payments relating to Tower 2, The Star must pay out AU$8 million ($5.2 million) to the JV partners, which it can set off against its final payment from the partners.
The deal also involves the transfer of The Star’s interest in a car park located nearby Queen’s Wharf Brisbane, as well as its stake in the Treasury Brisbane hotel.
