Star Entertainment finalizes arrangement to transfer Queen's Wharf ownership rights
Star Entertainment Group has announced its decision to exit its ownership and management role in Brisbane's Queen's Wharf casino project. The company will sell its 50% stake in the Destination Brisbane Consortium (DBC) to its Hong Kong partners, Chow Tai Fook Enterprises (CTFE) and Far East Consortium (FEC), who will take full ownership of the project.
The exit process is structured in two stages. The first stage, which involves transferring Star's DBC stake, is set to be completed by November 30, 2025. The second stage, which includes asset transfers, is expected to conclude in the second half of 2026.
As part of the deal, Star will hand over management responsibilities to a yet-to-be-named replacement operator in the future. The agreement also includes Star receiving a $53 million upfront payment, most of which has already been received, and the possibility of an additional $225 million payment in 2030, contingent on the project's financial performance.
Star's decision to exit follows severe financial pressures due to cost overruns and debt linked to Queen's Wharf, whose budget exceeded $1 billion over initial estimates. This move removes over $700 million in liabilities from Star’s books and transfers more than $350 million in development costs to CTFE and FEC, easing Star’s cash flow and debt burden.
The deal was temporarily delayed after a previous attempted sale collapsed in early August 2025, leaving Star exposed to considerable financial liabilities. However, the renewed agreement largely follows the original terms outlined in March 2025.
By stepping away from Queen's Wharf, Star avoids obligations that could significantly alleviate its cash flow pressures. The decision to withdraw from Queen's Wharf will also alleviate a substantial financial burden for the company.
In addition to exiting Queen's Wharf, Star will acquire stakes in two Gold Coast hotels adjacent to its existing casino. This move is expected to help the company focus on its existing operations, particularly on the Gold Coast.
However, the transaction's completion depends on state regulators approving both the ownership changes and the suitability of the incoming operator. Without these approvals, the transaction's future is uncertain, leaving Star's structure in a state of potential instability.
It is worth noting that Star has faced reputational damage linked to alleged past associations of one partner with organized crime figures, though no wrongdoing has been proven in relation to Queen's Wharf. The agreement is with Hong Kong-based partners to ease financial strain.
The identity of the new operator for Queen's Wharf remains unknown at this time.
Star Entertainment's share price has significantly dropped, currently trading at A$0.11 per share. Despite this, the agreement offers Star an opportunity to stabilize its balance sheet and focus on its existing operations.
[1] The Australian, "Star Entertainment to exit Queen's Wharf casino project", 1 September 2025. [2] The Sydney Morning Herald, "Star Entertainment Group sells Queen's Wharf stake to Hong Kong partners", 1 September 2025. [3] The Australian Financial Review, "Star Entertainment delays Queen's Wharf sale", 5 August 2025. [4] The Courier-Mail, "Star Entertainment set to sell Queen's Wharf stake", 2 March 2025. [5] The Australian, "Star Entertainment to complete Queen's Wharf sale by late 2026", 1 September 2025.
- Star Entertainment Group, in an effort to ease financial strain, is set to exit its regulatory obligations at Brisbane's Queen's Wharf casino project, with the potential for a new igaming operator to take over management of the project.
- In addition to selling its stake in the Destination Brisbane Consortium, Star will also acquire stakes in two Gold Coast hotels adjacent to its existing casino, aiming to focus on its existing operations, particularly on the Gold Coast, while ensuring compliance with state regulators.
- As part of the agreement, Star Entertainment Group will receive an upfront payment of $53 million and a contingent payment of $225 million in 2030, based on the project's financial performance, helping to improve the company's finance situation by alleviating a substantial financial burden.
