Star Entertainment Offloads Queen’s Wharf Stake to Hong Kong Partners

Star Entertainment has agreed to offload its 50% stake in Brisbane’s Queen’s Wharf casino to its Hong Kong-based partners, Chow Tai Fook Enterprises and Far East Consortium, for AUD 53 million ($34.62 million). This deal marks the culmination of months of stalled negotiations and marks a vital milestone in the property’s ongoing efforts to restructure its offerings, return to profitability, and distance itself from its troubled past.

The Deal Was Hard-Fought

The two Hong-Kong-based partners, who each hold a 25% share in the high-profile riverfront complex, will now take full ownership via their joint venture, Destination Brisbane Consortium (DBC). Meanwhile, Star will assume complete control of its Gold Coast properties, consisting of two hotel and residential towers, rounding out the deal.

Negotiations over the milestone sale started in March. However, a deadline passed on April 30 as the parties involved failed to submit vital documents. Rival Crown Resorts also previously expressed interest in Queen’s Wharf, which could have encouraged the Hong Kong partners to press on with negotiations. 

The sale will occur in two stages, with the exit from Queen’s Wharf by November 30 first, and additional conditions and asset transfers set to be completed in the second half of 2026. This deal has the approval of US casino giant Bally’s and Investment Holdings Pty Ltd, owned by Bruce Mathieson. The two companies spearheaded an AUD 300 million ($195.95 million)rescue deal to prop up the embattled Star Entertainment.

Star Entertainment Remains on the Road to Recovery

Star has been under intense financial pressure with a monthly cash burn of nearly AUD 25 million ($16.33 million). For reference, the operator had just AUD 234 million ($152.83 million) in available cash as of June 30. While the recent cash injection from Bally’s and Investment Holdings Pty Ltd stabilized the situation in the short term, the upcoming stricter regulations on wagering with cash in New South Wales represent another obstacle on the path to recovery.

Far East Consortium joint managing director Wendy Chiu was optimistic that the deal would help preserve one of Brisbane’s iconic casinos, safeguarding 2700 jobs. She drew attention to the upcoming 2032 Olympic and Paralympic Games as a potential revenue driver and was confident that Queen’s Wharf would endure as a premier entertainment destination.

We have been able to reach binding formal agreements with The Star that will enable us to keep the doors open and safeguard thousands of jobs in the heart of Brisbane.

Wendy Chiu, Far East Consortium joint managing director

The deal releases Star from the obligation to fund its share of the equity contributions related to DBC worth over AUD 212 million ($138.45 million) and from guarantees over half of the development’s debt facility. The reduced financial burden should be instrumental as the operator nears the September 30 deadline that could decide the fate of its Star Gold Coast and Star Sydney properties.