Star Entertainment Group has sold its 50% stake in the AU$3.6 billion Queen’s Wharf Brisbane development for AU$53 million, a steep discount aimed at easing the company’s heavy debt burden.
The stake was acquired by Star’s joint‑venture partners, Chow Tai Fook Enterprises and Far East Consortium International, the companies developing the casino and entertainment complex.
The sale removes about AU$1.4 billion in debt tied to the Brisbane project, a liability that has weighed on Star as it navigates a prolonged financial crisis. Star will continue to manage the casino under a new agreement that pays AU$18 million annually—far below the AU$60 million fee negotiated last year. The company may also receive a performance‑based incentive tied to gaming revenue, though the management contract can be terminated with 90 days’ notice.
Star had been in negotiations with its partners since February 2025, with talks at times close to collapsing.
A second phase of the transaction will transfer Chow Tai Fook’s and Far East Consortium’s interests in the Star Gold Coast casino to Star, consolidating the company’s Queensland operations under a single property.
The deal also helped Star secure a AU$550 million refinancing package through U.S. credit investor WhiteHawk Capital Partners, part of a broader effort to restructure debt and stabilize liquidity.
Financial Crisis and Rescue Efforts
Star’s financial troubles escalated after regulatory investigations found anti‑money‑laundering failures and governance deficiencies across multiple jurisdictions. The fallout included license suspensions and the collapse of its high‑margin VIP gambling business following a crackdown on junket operators.
The company was also heavily leveraged due to its investment in the Brisbane development. By late February 2025, Star held just AU$79 million in cash—barely enough to operate for another week.
Insolvency was avoided in November 2025 when Bally’s Corp. and the Mathieson family completed a AU$300 million capital injection. Bally’s now holds roughly 38% of Star, while Mathieson’s Investment Holdings controls about 23%.
