Star Entertainment strikes deal with Hong Kong investors

Star Entertainment has fended off impending insolvency thanks to a $53 million deal with Hong Kong investors.

The mega casino operator behind The Star Brisbane, The Star Gold Coast, and The Star Sydney announced in January that after spending $108 million in the three months leading up to the end of 2024, it only had $71 million left in the bank.

In an ASX announcement on Friday, the company said it has sold its 50 per cent stake in its new Brisbane Queen’s Wharf development to existing partners Chow Tai Fook and Far East Consortium. Following the trade, The Star will no longer own any assets in Brisbane.

As part of the trade, The Star acquired Chow Tai Fook and Far East Consortium’s stakes in Dorsett (Tower 1 Hotel) and Andaz (Tower 2 Hotel) on the Gold Coast, increasing its share from 33.3 per cent to full ownership.

The Star will receive up front cash payment of $53 million, including $35 that it received on Friday.

In the announcement, Group Chief Executive Officer and Managing Director Steve McCann said the move “contributes to providing a potential pathway towards financial viability”.

“The receipt of cash funding will provide additional support in the near-term as we focus on putting in place additional liquidity measures and seek to implement a whole of company refinancing,” said McCann.

McCann called the transaction “a step in the right direction”, but noted there were a number of additional challenges the company needs to address.

““The company still faces various risks, including the availability of funding, the ability to restore our licences (including implementing our remediation plan and various regulatory reforms relating to carded play and cash and time limits), maintaining support from stakeholders, resolving the various litigation and claims from historical issues and managing the business in a period of continuing lower revenue and negative cashflow,” said McCann.

“I would like to thank our team for their efforts and our stakeholders for their support in relation to the important matters we announced today.”