Star Entertainment Group has reached a binding agreement to sell its 50% interest in Brisbane’s $3.6 billion Queen’s Wharf development, paving the way for the company’s withdrawal from both ownership and management of the city’s casino. The deal, struck with long-standing Hong Kong partners Chow Tai Fook Enterprises (CTFE) and Far East Consortium (FEC), follows weeks of uncertainty after a previous arrangement collapsed in late July when key documentation was not completed on time.

The revived agreement was confirmed in an ASX announcement, which noted that the terms largely align with the original heads of agreement signed in March 2025. CTFE and FEC, who each already hold a 25% stake in the project through Destination Brisbane Consortium (DBC), will assume full ownership. A replacement operator—yet to be named—will eventually take over the casino’s management.

Asset Transfers and Financial Relief

As part of the transaction, Star will receive the combined 67% stake currently held by CTFE and FEC in two hotel and residential towers at The Star Gold Coast. The arrangement will also see other jointly held assets, including Brisbane’s Treasury Hotel and car park, transferred to the Hong Kong investors.

According to Business News Australia, the deal will be completed in two stages. The first—covering the sale of Star’s DBC stake—has a deadline of 30 November 2025. The second, which involves asset transfers between the Brisbane and Gold Coast operations, is expected to conclude in the latter half of 2026. Both phases are contingent upon regulatory approvals, lender consent, and other conditions precedent.

A key financial component is Star’s release from future equity obligations to DBC, saving at least AU$212 million, and from its guarantee on the consortium’s AU$1.4 billion debt facility, due for refinancing in December 2025. Star will also receive $53 million in cash for the deal, including an $8 million payment due before 28 November, and remains eligible for an earn-out of up to $225 million in 2030, depending on the consortium’s performance.

The transaction has already secured the backing of US-based Bally’s Corporation and Bruce Mathieson’s Investment Holdings Pty Ltd, who together provided AU$300 million in emergency funding earlier this year in exchange for a controlling stake in Star, pending probity checks. Both have agreed to support the Brisbane exit.

State government approval will still be required for the ownership change. Queensland’s Attorney-General Deb Frecklington has so far declined to comment beyond stressing that protecting casino workers remains a priority.

Background: Financial Strain and Controversial Partners

The decision to withdraw from Brisbane is part of a broader effort to stabilise Star’s finances after a sharp downturn caused by regulatory scrutiny and mounting debt. The company’s shares, once trading above $4 in 2019, now hover around 12 cents despite a nearly 30% jump following the latest announcement.

The move also comes amid ongoing controversy over CTFE’s suitability as a casino partner. A 2022 ABC investigation linked the company to junket boss Alvin Chau through a Vietnam casino venture, despite its claims to have severed ties. Chau is serving an 18-year prison sentence for large-scale fraud involving his Suncity gambling network. While a government inquiry acknowledged CTFE’s lack of candour with regulators, it ultimately deemed the company fit to hold a casino licence, citing “differences in cultural and organisational expectations.”

Wendy Chiu, executive director and joint managing director of FEC, described the transaction as “a significant milestone” and reaffirmed the partners’ commitment to delivering lasting value from Queen’s Wharf ahead of Brisbane’s role as host city for the 2032 Olympic and Paralympic Games. Jacob Lee, senior vice president at CTFE, added that the deal would allow the group to “leverage our shared expertise across hotels, car parking and events centre management.”

Queen’s Wharf, which opened in August 2024 with approval for 2,500 poker machines, was intended to be a flagship project for Star. However, its budget has blown out by more than $1 billion, and the associated debt burden has weighed heavily on the company’s financial position. The current agreement not only removes over $700 million in liabilities from Star’s books but also shifts more than $350 million in development costs to its partners.