Star Entertainment shares have surged after it finalised a deal that looked dead two weeks ago with its half share of Brisbane’s new casino and resort sold to its Hong Kong-based joint venture partners for A$53 million (US$35 million).
Star said it had entered into binding long-form documentation with Chow Tai Fook Enterprises and Far East Consortium International (FEC) in relation to the Destination Brisbane Consortium (DBC), Destination Gold Coast and other assets.
Star (ASX:SGR) shares jumped two cents (18.3%) to 11 cents, capitalising the company at $312.05 million, in response to the announcement to the Australian Securities Exchange.
The transaction involves Star selling its 50% interest in DBC, consolidating its position on the Gold Coast and transferring other Brisbane assets and interests to its partners.
The company’s subordinated lenders Bally's Corporation and hotel industry billionaire Bruce Mathieson support the transaction, which will be completed in two stages.
The first stage, the sale of the DBC interest, has a sunset date of 30 November 2025.
The sale of the other assets (Treasury Brisbane Car Park, Treasury Brisbane Hotel and 50 of the Charlotte St Car Park in Brisbane) is expected to be completed in the second half of the 2026 calendar year.
This marks a major development given Star announced earlier this month that a heads of agreement to sell 50% of DBC to its joint venture partners for A$53 million had been terminated.
Without it, the cash-strapped company would have had to find another $41 million in the next five weeks and potentially more down the track to avoid collapse.
Star said $45 million of the $53 million had been paid in March 2025 and the remaining $8 million was payable by the earlier of 30 November 2025 and the practical completion of the recapitalisation of Tower 2 Hotel (Andaz) on the Gold Coast.
The company will also receive 66.6% interests in Tower 1 Hotel (Dorsett) and Tower 2 on the Gold Coast, management rights for Dorsett after up to five more years of management by FEC, and development rights on future towers at the Gold Coast property, with a buy out right on the next tower.
