Star secures lifeline to unload entertainment precinct
Star Entertainment Group has secured a $53 million lifeline in exchange for selling its share of the Queen’s Wharf Brisbane entertainment precinct.
The precinct is being delivered by Destination Brisbane Consortium and is currently managed by the Star, which has been facing short-term liquidity challenges.
Hong Kong investors Far East Consortium on Saturday confirmed Star would exit its 50 per cent share of the precinct, a move that would save approximately 2,700 jobs.
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Following completion of the transaction, the consortium will be jointly owned by FEC and Chow Tai Fook Enterprises, each owning 50 per cent.
“Far East Consortium is committed to Queen’s Wharf Brisbane, its employees and the state of Queensland,” executive director Wendy Chiu said.
“This transaction aims to secure QWB’s future viability and that of the many local businesses that rely on this world-class tourism, leisure and entertainment destination.”
The Star has also agreed to terminate the casino management agreement in relation to the precinct in an orderly fashion and in accordance with an agreed transition plan.
The new partners will pay the embattled Star $53 million in cash, with the first tranche of $35 million paid on signing.
