Crown could take over Brisbane’s Queen’s Wharf Casino
Sources suggest that Crown is the leading candidate to take over operations from Star Entertainment.
Australia.- Crown Resorts is emerging as a candidate to take over operations at Brisbane’s Queen’s Wharf casino, as current operator Star Entertainment battles financial and regulatory troubles. The AU$3.6bn (US$2.3bn) development, would be Crown’s first business in Queensland, pending the outcome of negotiations with joint venture partners Chow Tai Fook Enterprises and Far East Consortium.
In March, Star agreed to sell its 50 per cent stake in the project to its partners for AU$53m (US$34m). However, the agreement has yet to be finalised. If no contract is signed by July 31, Star could face an AU$36.5m (US$23m) penalty.
Sources close to the matter suggest that Crown, now owned by US private equity firm Blackstone, is the leading candidate to assume day-to-day casino operations due to its experience managing casinos in Sydney, Melbourne and Perth. Alternatives under consideration reportedly include SkyCity Entertainment and U.S.-based Delaware North.
American operator Bally’s Corporation has proposed a AU$300m (US$194m) investment in Star. The offer, contingent on regulatory approval, grants Bally’s effective veto rights over any significant changes to the original sale agreement.
