Crown Resorts has officially sold the One Queensbridge development site in Melbourne for AU$85 million (US$57.05 million), as part of a strategic move by its private equity owner, Blackstone, to recover from poor financial performance.
The sale, finalized in August, marks a significant shift for the casino operator, which had originally planned to create a $1.75 billion (US$1.17 billion), 90-floor hotel and apartment complex on the site, set to be Melbourne’s tallest tower, with development plans shelved in 2019.
The recent transaction follows Crown’s earlier divestiture of its 20 percent stake in Nobu, the globally recognized restaurant chain partly owned by Hollywood actor Robert De Niro, in a deal valued at AU$1.3 billion (US$871.81 million).
The Australian Financial Review has indicated that Crown is also exploring the sale of its prestigious Melbourne golf club and the high-end Aspinall’s Club in London.
Blackstone acquired Crown Resorts for AU$8.9 billion (US$5.95 billion) in 2022 and has focused on liquidating non-core assets to improve the company’s financial standing.
The group reportedly injected nearly AU$500 million ($337 million) into Crown Resorts in 2023 following its significant penalties for breaking anti-money laundering and counter-terrorism financing (AML/CTF) legislation.
In its latest filings with the Australian Securities and Investments Commission (ASIC), Crown revealed it had reached agreements to sell various parcels of land and had found a buyer for one of its private jets, a Bombardier Global Express XRS.
The One Queensbridge site was initially a collaborative project with the Schiavello Group, which Crown purchased out of its 50 percent stake in 2020 for AU$80 million (US$53.69 million), intending it to become a fourth hotel under the Crown brand.
While the development plans have been abandoned, the sale includes a profit-sharing agreement that could yield additional revenue for Crown if the buyer, identified as commercial property developer PDG, secures planning permits and advances the project.
Crown Resorts reported a narrowed loss of AU$164.8 million (US$110.43 million) for the fiscal year ending June 30, 2024, a 17.4 percent improvement from the AU$199 million (US$133.56 million) loss recorded the previous year.
However, this improvement is largely attributed to cost-cutting measures rather than a significant increase in business volumes. The company’s revenues stood at AU$2.8 billion (US$1.88 billion), a slight decline of 0.2 percent compared to the previous year.
Crown’s recent financial challenges resulted from multiple inquiries that deemed the company unsuitable to hold casino licenses across its properties in Sydney, Melbourne, and Perth.
These investigations uncovered systemic issues related to money laundering controls, responsible gambling practices, tax compliance, and other regulatory concerns. Following a comprehensive transformation led by CEO Ciarán Carruthers, Crown has since regained its suitability in New South Wales and Victoria.
