The Star Sells Iconic Treasury Building Amid Financial Struggles

The Star Entertainment Group has sold its leasehold interest in Brisbane’s historic Treasury Building to Griffith University. This AUD67.5 million ($45 million) agreement signals a big change for The Star and the university. The casino company aims to raise much-needed money, while Griffith University plans to turn the landmark into a major place of learning.

The Star Finalizes Treasury Casino Property Sale to Fund Queen’s Wharf Development

The sale comes after the Treasury Casino shut down in August 2024, as The Star moves to its new AUD3.6 billion ($2.4 billion) Queen’s Wharf project. This development, which includes a new casino still needs the green light from regulators. The move is part of The Star’s larger plan to tackle its money troubles, including a debt of over AUD1 billion ($666.7 million). The company thinks it will get about AUD60.7 million ($40.5 million) from the deal, which will finish by the end of September if the government approves.

The Star’s choice to sell the property comes after a string of problems, including growing money troubles and rule-breaking issues. The company’s been pushed to find ways to raise cash, like selling off key assets, as it deals with big market hurdles. The Star has been asking the Queensland Government for tax breaks to help keep its business running in the Queen’s Wharf area, which is key to the company’s future.

Money problems at The Star have gotten worse due to government investigations in New South Wales. There, officials have looked into whether the company should keep its casino license. A second probe into The Star’s NSW operations ended. Its results put more strain on the company. Because of this, The Star missed deadlines to report its finances. This led the Australian Securities Exchange (ASX) to stop trading of The Star’s stock.

The Star’s CEO Discusses the Treasury Building Sale and Its Role in Company Restructuring

Even with these hurdles, The Star Brisbane CEO Daniel Finch remained hopeful about selling the Treasury Building, reported Business News Australia. Finch said it had been a privilege for the company and its staff to run the heritage-listed building for almost 30 years. He recognized that saying goodbye to such a famous property was tough, but the sale would enable the building to keep serving the community just in a different way.

The Star is selling the Treasury Building as part of its bigger plan to reshape the company. The Star’s future depends a lot on how well the Queen’s Wharf project does. The money from selling the Treasury Building gives The Star some short-term financial help, but the company still has big challenges to face. The Star will need to sell more assets and keep talking with government officials as it tries to get back on solid financial ground.