Star Entertainment offloads Brisbane's Queen's Wharf precinct in $53m deal
In an announcement made just before 11am on Tuesday, Star said the new deal was almost identical to the one made in March.
It will see the ASX-listed casino sell its 50 per cent stake in the Queen's Wharf precinct to Hong Kong Consortium Chow Tai Fook and Far East Consortium, who each already own 25 per cent of the building.
Star will receive $53m in total through the deal, of which the first $45m was paid back in March and the remaining $8m to go through by November 30.
The deal will ease the burden on Star, which was facing having to cough up its share of the $1.4bn in debt tied to the Queen's Wharf precinct.
Star Entertainment will also take two-thirds of the Dorsett and Andaz hotels, which are currently being built on the Gold Coast by the Hong Kong consortium.
Shares in Star jumped 29 per cent to $0.115 on Tuesday following the announcement.
The statement said the deal had been approved by US-based owners Bally's Corp.
'The key aspects of the transaction are materially consistent with the Heads of Agreement announced to the ASX on (March 7),' the statement said.
Star first struck a deal to sell the complex back in March, before it was revealed the deal was unlikely to be completed by July.
Talks stalled and Star was forced to pay its business partners $10m as part of a termination agreement, and a further $31m before September 5.
Tuesday's announcement said the transaction would be completed in two separate stages.
Firstly, Star will completely exit from the Brisbane precinct. The Gold Coast assets are subject to separate conditions that are due to be completed by the second half of 2026.
The deal will significantly improve the embattled Star Entertainment's financial position, with the latest financial results showing it will get more than $700m in liabilities and $350m in development costs off its books through the sale.
Originally published as Star Entertainment offloads Brisbane's Queen's Wharf precinct in $53m deal
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While tin remains niche and will never be a big part of the Lowell Resources Fund (ASX:LRT) portfolio, its chief investment officer John Forwood says strength in the tin price – US$33,805/t today – and those fundamentals make it a market to watch closely. "Rule of thumb, what I work on is tin is worth 3x as much as copper," Forwood said. "Half a percent tin grade is one and a half percent copper equivalent, or slightly better at the moment. "Tin recoveries generally are significantly lower – if you're in the 70s you're happy but you probably wouldn't be happy getting that from a copper flotation plant. So there are some differences. "(But) the demand side and the price response in a long-term sense is very good for tin (and) the supply side is where it gets a little murky." That's a great fundamental setup for continued price strength, with China, Indonesia and Myanmar all countries with a lack of transparency when it comes to the status of their operations. 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At the time, Kodak was looking to recreate itself as a new, much smaller company focused on commercial and packaging printing. Kodak is now nearing completion on a manufacturing plant to create regulated pharmaceutical products. The company already makes unregulated key starting materials for pharmaceuticals. Production at the retrofitted facility is expected to start later this year. Shares slid more than 20 per cent in midday trading. The more than 130-year-old Eastman Kodak Co has expressed caution about its business operations but says it is confident it will be able to work out upcoming debt obligations. "Kodak has debt coming due within 12 months and does not have committed financing or available liquidity to meet such debt obligations if they were to become due in accordance with their current terms," the company wrote in a regulatory filing. The Rochester, New York-based company said that it had $US155 million ($A239 million) of cash and cash equivalents as of June 30, with $US70 million held within the US. Kodak said in a statement on Tuesday that the going concern language in its regulatory filing is essentially a required disclosure because its debt comes due within 12 months of the filing. "Kodak is confident it will be able to pay off a significant portion of its term loan well before it becomes due, and amend, extend or refinance our remaining debt and/or preferred stock obligations," the company said. Last year Kodak said that it would end its retirement income plan in order to pay down debt, according to The Wall Street Journal. Kodak Chief Financial Officer David Bullwinkle said in a statement on Monday that the company expects to know by Friday how it will satisfy its obligations to pay all pension plan participants and foresees completing the reversion by December. Founded by George Eastman in 1880, Eastman Kodak Co is credited with popularising photography at the start of the 20th century and was known all over the world for its Brownie and Instamatic cameras and its yellow-and-red film boxes. It was first brought down by Japanese competition and then an inability to keep pace with the shift from film to digital technology. Kodak filed for bankruptcy protection in 2012 after struggling with increasing competition, continuing growth in digital photography and growing debt. The company wound up selling off many of its businesses and patents while shutting down the camera manufacturing unit that first made it famous. It received approval for its plan to emerge from court oversight a year later. At the time, Kodak was looking to recreate itself as a new, much smaller company focused on commercial and packaging printing. Kodak is now nearing completion on a manufacturing plant to create regulated pharmaceutical products. The company already makes unregulated key starting materials for pharmaceuticals. Production at the retrofitted facility is expected to start later this year. Shares slid more than 20 per cent in midday trading. The more than 130-year-old Eastman Kodak Co has expressed caution about its business operations but says it is confident it will be able to work out upcoming debt obligations. "Kodak has debt coming due within 12 months and does not have committed financing or available liquidity to meet such debt obligations if they were to become due in accordance with their current terms," the company wrote in a regulatory filing. The Rochester, New York-based company said that it had $US155 million ($A239 million) of cash and cash equivalents as of June 30, with $US70 million held within the US. Kodak said in a statement on Tuesday that the going concern language in its regulatory filing is essentially a required disclosure because its debt comes due within 12 months of the filing. "Kodak is confident it will be able to pay off a significant portion of its term loan well before it becomes due, and amend, extend or refinance our remaining debt and/or preferred stock obligations," the company said. Last year Kodak said that it would end its retirement income plan in order to pay down debt, according to The Wall Street Journal. Kodak Chief Financial Officer David Bullwinkle said in a statement on Monday that the company expects to know by Friday how it will satisfy its obligations to pay all pension plan participants and foresees completing the reversion by December. Founded by George Eastman in 1880, Eastman Kodak Co is credited with popularising photography at the start of the 20th century and was known all over the world for its Brownie and Instamatic cameras and its yellow-and-red film boxes. It was first brought down by Japanese competition and then an inability to keep pace with the shift from film to digital technology. Kodak filed for bankruptcy protection in 2012 after struggling with increasing competition, continuing growth in digital photography and growing debt. The company wound up selling off many of its businesses and patents while shutting down the camera manufacturing unit that first made it famous. It received approval for its plan to emerge from court oversight a year later. At the time, Kodak was looking to recreate itself as a new, much smaller company focused on commercial and packaging printing. Kodak is now nearing completion on a manufacturing plant to create regulated pharmaceutical products. The company already makes unregulated key starting materials for pharmaceuticals. Production at the retrofitted facility is expected to start later this year. Shares slid more than 20 per cent in midday trading.
