Star seals deal to sell Queen's Wharf casino to HK partners
The publicly listed company has been locked in negotiations over plans to sell its 50 per cent stake in Brisbane's Queen's Wharf casino to Chow Tai Fook Enterprises and Far East Consortium, as it scrambles to reduce debt and survive a financial crunch.
Star had been unable reach an agreement with the parties before a key deadline two weeks ago, but on Tuesday it said it had entered into a $53 million binding deal.
The deal will see Star sell its share of Brisbane's Queen's Wharf casino to Chow Tai Fook Enterprises and Far East Consortium and hand Star ownership of properties at the Gold Coast casino.
Star is also selling a Brisbane hotel and car park at its Treasury complex, and a 50 per cent stake in a car park in Charlotte Street, Brisbane.
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The transaction means Star will not be required to fund any equity contributions to the Queens Wharf project. If it had not entered the deal, it expected these contributions would have been at least $212 million.
Star will also be released from its guarantee over a 50 per cent share of the project's debt facility.
The gaming giant said it had received consent from the US casino group Bally's that took a major stake in Star earlier this year.
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