The Star Entertainment Group announces that its discussions with joint venture partners Chow Tai Fook Enterprises and Far East Consortium International have been terminated.
After being unable to reach an agreement on a number of ‘outstanding commercial issues,’ The Star proposed to the Joint Venture Partners an extension of a negotiation date to 6 August, but this was not accepted.
As a result, the heads of agreement (HoA) termination notice has taken effect, and it has been officially terminated. The discussions date back to March when Star Entertainment planned to sell its stake in the Destination Brisbane Consortium (DBC) and Destination Gold Coast Consortium (DGCC) to its joint venture partners.
Now that the deal has fallen through, The Star will retain its 50% equity interest in DBC and its ⅓ equity interest in DGCC. “The Star will also retain the Treasury Brisbane hotel and car park and its 50% equity interest in the Charlotte Street Car Park (Festival),” the ASX announcement states.
The Star must also repay $10 million of proceeds it received from the Joint Venture Partners, with the amount payable by 6 August 2025.
The Star will retain its 50% equity interest in the Destination Brisbane Consortium
In addition to the repayment, The Star must reimburse the Joint Venture Partners for its share of equity contributions that have been made by them to the DBC since 31 March 2025. This amount is currently anticipated to be approximately $31 million and is payable by 5 September 2025.
As for the Joint Venture Partners, they are required to reimburse The Star for their share of equity contributions that have been made by The Star to DGCC since 7 March 2025 under the terms of the HoA. This is expected to be around $1 million.
“The Star is continuing to engage with the Joint Venture Partners and will provide an update if there are any material developments regarding the parties’ respective interests in DBC and DGCC,” the announcement says.
“Given the termination of the HoA, The Star is considering what alternative options may be available to it in relation to its 50% equity interest in DBC, along with the Treasury Brisbane hotel and car park and its 50% equity interest in the Charlotte Street Car Park (Festival).”
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