Amid threats of having its casino license canceled, The Star Entertainment Group has taken a significant step in its restructuring efforts by announcing an agreement to sell its interest in the Treasury Brisbane Casino to Griffith University for AUD67.5 million (US$59.1 million).
The sale is part of The Star's broader transition toward the $2.4-billion Queens Wharf development, where the group holds a 50% stake and is planning to open a new casino, pending regulatory approvals.
Star Entertainment's Treasury Casino in Brisbane, Australia.
The transaction comes over a year after a previous agreement with property investor Charter Hall fell through. The original deal, valued at $248 million, included a sale and leaseback arrangement for the Brisbane Treasury complex, which comprises the Treasury Casino, its hotel and a parking garage. Despite the current sale, several assets under the Treasury umbrella, including another parking garage in Brisbane, remain on the market.
The Star expects net proceeds of AUD60.7 million (US$40.4 million) from the sale. However, government approvals are required, and Griffith University must secure and register a new lease agreement for the property. The settlement and the establishment of the lease are expected to be finalized by September 27, with Griffith University looking to inaugurate the new campus sometime in 2027.
The sale comes amid a backdrop of financial difficulties for The Star. The company has been under pressure from challenging market conditions and delays in finalizing its FY24 earnings report. Recent reports suggest the company may be considering safe harbor provisions. Additionally, there is speculation that The Star may seek to raise capital, potentially by way of tax breaks from the government.
This speculation intensified following the release of the second Bell inquiry report by the NSW Independent Casino Commission, which questioned The Star's suitability to retain its casino license. The commission is currently reviewing the report and considering its next steps, adding further uncertainty to the group's future.
