**Star Entertainment Faces Deal Termination for Brisbane Project**
Star Entertainment Group has announced that it has received a notice from Hong Kong’s Far East Consortium International and Chow Tai Fook Enterprises regarding the termination of their agreement to sell a 50% stake in the Queen’s Wharf project in Brisbane. This termination will take effect five business days from June 30, unless the parties decide to withdraw it sooner.
The agreement, initially made on March 7, was intended to facilitate Star’s exit from its equity interest in the Destination Brisbane Consortium (DBC). However, as of the latest update, key commercial issues related to the deal remain unresolved, according to a statement from Star. Despite this setback, Star’s shares saw a 1.7% increase, reaching A$0.147 as of 0104 GMT.
The Queen’s Wharf project, which has been developed at a cost of A$3.6 billion (approximately $2.35 billion), features luxury hotels, restaurants, and various amenities. If the deal had proceeded, Far East Consortium and Chow Tai Fook Enterprises would have become the sole owners of this significant Brisbane venture. In return, Star was expected to acquire a 66.67% stake in a Gold Coast project in Queensland from the investors.
In a related statement, Far East Consortium indicated that Star is required to repay A$10 million within 30 days of the termination notice. Should Star fail to make this payment, it will need to transfer its 33.3% stake in Tower 1 (Dorsett) to the Hong Kong entities.
Despite the notice of termination, Star Entertainment expressed its willingness to continue negotiations with the joint venture partners to facilitate the DBC transaction. The company has not yet responded to inquiries regarding the repayment details.
In recent years, both Star and its larger competitor, Crown Resorts, which is owned by Blackstone, have faced scrutiny over anti-money laundering violations and subsequent legal challenges. The outcome of these ongoing issues remains to be seen as the companies navigate their respective futures in the competitive gaming and hospitality industry.
**FAQ**
**What is the status of the Queen’s Wharf project in Brisbane?**
Star Entertainment’s agreement to sell its 50% stake in the Queen’s Wharf project has been terminated, with unresolved commercial issues prompting the notice from its partners.