Star Ent secures AU$1.6b funding for QWB project

Terms for the funding were confirmed before the Covid-19 pandemic.

Australia.- Star Entertainment Group has received AU$1.6 billion in funding for its Queen’s Wharf (QWB) development project in Brisbane.

In an ASX filing, Star announced that terms for the funding were confirmed before the Covid-19 pandemic and “therefore reflect terms available in the market at that time”.

The filing also said: “Conditions precedent for the QWB Funding is expected to be completed in June 2020, including relevant final approvals from the Queensland Government.

“The first draw-down on the QWB Funding is expected in June 2020 in relation to the facility and other fees, with a more substantial draw-down to fund construction to commence in early CY2021.

“The QWB Funding is for a period of 5.5 years, which is expected to provide around three years of operating history before refinancing is required, and is recourse funding in proportion to the partners’ equity interests (i.e. 50 per cent to The Star).”

Construction of the QWB has been in progress for some time, with over 2,500 slot machines said to be part of the multi-billion dollar casino.