Star Entertainment finalises binding agreements with Joint Venture Partners
Asset transfer agreements outline staged completion in Brisbane and Gold Coast.
Key points:
– Star will exit its 50% stake in Destination Brisbane Consortium (DBC) and transfer management of the Brisbane Integrated Resort to a replacement operator
– The company will consolidate its Gold Coast position by acquiring full ownership of key hotel assets
– Previous termination of Heads of Agreement now appears less of an issue, with terms simply renegotiated
The Star Entertainment has executed binding long-form documentation with Chow Tai Fook Enterprises (CTFE) and Far East Consortium International (FEC) relating to transactions involving assets in Brisbane and the Gold Coast.
The agreements include The Star’s disposal of its 50% interest in DBC, owner of the Queen’s Wharf Brisbane Integrated Resort, and transfer of other Brisbane assets to the Joint Venture Partners.
In exchange, The Star will take full ownership of hotels within the Destination Gold Coast Consortium (DGCC) and obtain exclusive development rights for future projects on the Gold Coast.
The transactions will be completed in two stages. The first, covering the upcoming DBC exit, is scheduled for completion by 30 November 2025 subject to conditions including regulatory and lender approvals.
The second stage, which covers DGCC and Treasury Brisbane assets, is expected to complete in the second half of calendar year 2026.
Good to know: The restructuring is expected to remove The Star’s obligation to fund future equity contributions to DBC, previously estimated at more than $200m
The agreements replace the previous Heads of Agreement, which was terminated on 1 August 2025, and retain the key commercial terms announced to the ASX in March 2025.
The Star has also received consent from subordinated lenders Bally’s Corporation and Investment Holdings to proceed on the executed terms.
This follows shareholder approval in late June 2025 for a AU$300m investment from Bally’s and Investment Holdings in the form of convertible notes, intended to support the company’s capital position.
Meanwhile, UBS Securities Australia is acting as financial adviser with Allens as legal adviser.
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