Star Entertainment Sells Queen’s Wharf Stake to Hong Kong Partners

Significant Stake Sale at Queen’s Wharf Casino

Star Entertainment has agreed to transfer its 50% ownership share in Brisbane’s Queen’s Wharf casino to its Hong Kong partners, Chow Tai Fook Enterprises and Far East Consortium, for AUD 53 million (approximately $34.62 million). This agreement concludes a lengthy negotiation period and is a key step in the property’s ongoing restructuring efforts as Star looks to improve profitability and move beyond its turbulent history.

Details and Challenges of the Deal

The two Hong Kong firms, each holding 25% of the prominent riverfront development, will consolidate full ownership through their joint venture, Destination Brisbane Consortium (DBC). Concurrently, Star Entertainment will take complete control of its Gold Coast assets, which include two hotel and residential towers.

Negotiations began in March but faced setbacks, including missing critical documentation by the April 30 deadline. Interest from rival Crown Resorts may have influenced the persistence of the Hong Kong investors throughout the discussions.

The transaction will be executed in two phases: initially, Star will exit Queen’s Wharf by November 30, followed by further conditions and asset transfers scheduled for the latter half of 2026. The arrangement has backing from US casino powerhouse Bally’s and Investment Holdings Pty Ltd, led by Bruce Mathieson, who jointly orchestrated a substantial AUD 300 million ($195.95 million) bailout for Star Entertainment during difficult times.

Star Entertainment’s Path to Financial Recovery

Star Entertainment is currently facing significant financial strain, burning nearly AUD 25 million ($16.33 million) per month. As of June 30, the company held only AUD 234 million ($152.83 million) in cash reserves. Although the bailout by Bally’s and Investment Holdings Pty Ltd has provided short-term stability, upcoming tighter regulations on cash-based wagering in New South Wales pose further challenges.

Far East Consortium’s joint managing director, Wendy Chiu, expressed optimism about preserving one of Brisbane’s landmark casinos and protecting approximately 2,700 jobs. She highlighted the upcoming 2032 Olympic and Paralympic Games as a promising catalyst for increased revenue and reaffirmed Queen’s Wharf’s status as a leading entertainment venue.

We have been able to reach binding formal agreements with The Star that will enable us to keep the doors open and safeguard thousands of jobs in the heart of Brisbane.

This transaction also frees Star Entertainment from the obligation to contribute over AUD 212 million ($138.45 million) in equity funding for DBC and relieves them from guarantees on half of the development’s debt. This reduced financial burden could be crucial as Star faces a September 30 deadline that will likely determine the future of its Star Gold Coast and Star Sydney properties.