BRISBANE – Star Entertainment has finalized a binding agreement to sell its 50% stake in the Queen’s Wharf Brisbane casino to Hong Kong-based partners Chow Tai Fook Enterprises and Far East Consortium for AUD 53 million (USD 34.62 million). The transaction marks a pivotal step in Star’s broader financial restructuring and its effort to stabilize operations amid regulatory and liquidity pressures.
Deal Structure and Strategic Implications
Under the agreement:
- Chow Tai Fook and Far East Consortium, each previously holding a 25% stake, will assume full ownership of Queen’s Wharf via their joint venture, Destination Brisbane Consortium (DBC)
- Star Entertainment will retain full control of its Gold Coast assets, including two hotel and residential towers
The deal will unfold in two phases:
- Exit from Queen’s Wharf by November 30, 2025
- Additional asset transfers and conditions finalized in H2 2026
The transaction has received backing from Bally’s Corporation and Investment Holdings Pty Ltd (owned by Bruce Mathieson), who recently led a AUD 300 million (USD 195.95 million) rescue package for Star.
Financial Relief Amid Mounting Pressure
Star’s financial challenges have been acute:
- Monthly cash burn: AUD 25 million (USD 16.33 million)
- Available cash (as of June 30): AUD 234 million (USD 152.83 million)
- DBC equity obligations relieved: AUD 212 million (USD 138.45 million)
- Debt guarantees removed: Star is no longer liable for half of DBC’s debt facility
This divestment significantly reduces Star’s financial exposure and positions the company to better navigate upcoming regulatory changes in New South Wales, including tighter controls on cash wagering.
Queen’s Wharf Future Secured
Far East Consortium joint managing director Wendy Chiu expressed confidence in the property’s long-term viability:
“We’ve reached binding agreements with The Star that allow us to keep Queen’s Wharf operational and safeguard over 2,700 jobs in Brisbane’s entertainment district.”
Chiu also highlighted the 2032 Olympic and Paralympic Games as a major opportunity to drive tourism and revenue, reinforcing Queen’s Wharf’s role as a flagship entertainment destination.
Outlook: Star’s Recovery Path
While the sale alleviates immediate financial strain, Star Entertainment remains under scrutiny. The operator faces a critical September 30 deadline that could determine the future of its Star Gold Coast and Star Sydney properties. Regulatory compliance, operational efficiency, and capital discipline will be key as Star attempts to rebuild investor confidence and restore long-term profitability.
