The Star’s sale and leaseback deal for Treasury casino falls through

Charter Hall had pulled out of the AU$248m (US$168.7m) deal to buy Star Entertainment assets.

Australia.- The Star Entertainment Group has announced the failure of a planned sale and partial leaseback transaction involving the Treasury Casino and Hotel buildings and Queen’s Gardens Car Park. However. The proposed deal with Charter Hall has fallen through.

According to a company’s statement, Charter Hall decided not to proceed with the transaction due to the conditions not being satisfied within the specified timeframe. As a result, The Star is now evaluating alternative options in response to this development.

In the previous announcement on 27 October 2021, The Star revealed its intention to enter into the sale and partial leaseback transaction with Charter Hall, subject to certain conditions and State consent. However, it has now been confirmed that Charter Hall has withdrawn from the deal, citing the failure to meet the required conditions as outlined in the contractual terms. The Star had requested an extension of the timeframe for satisfying these conditions, but Charter Hall declined the request.

With the sale and leaseback deal no longer proceeding, The Star Entertainment Group is now faced with the task of exploring alternative avenues for its Treasury Casino and Hotel properties. The company is actively considering its options in response to this unexpected turn of events.

Earlier this month, the company also announced its Queen’s Wharf integrated resort in Brisbane will not open until April 2024. The Destination Brisbane Consortium (DBC), a joint venture between The Star, Chow Tai Fook Enterprises, and Far East Consortium, made adjustments to the timeline after reviewing construction progress.

The Star CEO and managing director Robbie Cooke said: “The revised opening date follows careful consideration of current progress by our builder. Queen’s Wharf has not been immune from the types of pressures that other major infrastructure projects across Australia have encountered.

“We are disappointed, but this transformational development for Brisbane has been eight years in the making already, and it will be well worth the wait. Queen’s Wharf will be a game-changer for a city that continues to attract the eyes of the world as we charge towards the 2032 Olympic and Paralympic Games.” 

The Queen’s Wharf Brisbane development will include four luxury hotels, 50 new bars and restaurants, a retail area, up to 2,000 residential apartments and the equivalent of 12 football fields of public space. It is expected to host 2,500 slot machines.