Star strikes last minute deal to save Queen’s Wharf casino
Australia’s embattled casino operator, Star Entertainment, has secured a last-minute reprieve from its Hong Kong partners over a threatened withdrawal from the A$3.6 billion (€2.2 billion) Queen’s Wharf Brisbane development, temporarily averting a major setback in its efforts to offload its stake in the flagship project.
The casino group announced on Monday that it had reached a revised understanding with Chow Tai Fook Enterprises and Far East Consortium — the two Hong Kong-based firms which each hold a 25 percent interest in the Queen’s Wharf joint venture.
The two had issued a formal termination notice last week, warning they would walk away from the deal to acquire Star’s remaining 50 percent stake if certain conditions were not fulfilled within five business days.
Termination at July end?
According to Star, both sides have now agreed to “a set of principles under which there will be certain departures from the heads of agreement.” As a result, the termination deadline has been extended to 31 July 2025, allowing time to finalise long-form documentation.
In a separate statement, Far East Consortium said recent talks centered on ensuring an “orderly transition” of management responsibilities at Queen’s Wharf, with a focus on providing certainty to joint venture partners and stakeholders during Star’s proposed exit.
For the unaware, Queen’s Wharf Brisbane is a large-scale, mixed-use development that includes a casino operated by Star Entertainment. However, the precinct is much broader, featuring hotels, restaurants, public spaces, and residential towers, making the casino just one component of the project.
Despite the development, investor confidence remains shaky. Star’s shares dropped as much as 3.85 percent to A$0.125 (approx. €0.075) during early trading, even after the announcement.
Financial strain deepens for Star
If the deal ultimately collapses, Star faces financial pressures. The firm may be required to pay nearly A$37 million (approx. €22.6 million) to its Hong Kong partners by the end of September as negotiations progress over its exit from Brisbane’s new Queen’s Wharf casino and hotel project.
Star Entertainment has been reeling from a series of setbacks, including regulatory scrutiny and financial mismanagement. The firm’s shares have been suspended since 28 February after it failed to lodge its accounts on time.
In late June, shareholders approved an A$300 million (approx. €183 million) bailout package aimed at keeping the operator afloat. The rescue effort is being led by US gaming giant Bally’s Corporation and the Mathieson family, Star’s largest existing shareholder.
The new deadline gives Star a limited window to finalise its exit from the Queen’s Wharf venture, but analysts say questions remain about the company’s longer-term financial stability and operational future.
