The money or the tower?
That’s the decision facing cash-strapped Star Entertainment after one leg of its corporate survival plan collapsed, leaving it considering its fund raising options as it has to stump up $41 million in the next five weeks and potentially more down the track.
The casino and entertainment company announced a heads of agreement (HoA) to sell its 50% interest in the new Brisbane casino and resort to its joint venture partners for A$53 million had been terminated.
Star said in ASX announcement the HoA had been terminated because Chow Tai Fook Enterprises and Far East Consortium International refused to agree to extend the deadline to reach agreement on commercial issues from 31 July to 6 August.
The company said that as a result it must repay $10 million of the sale proceeds received from its partners by 6 August 2025 and their $31 million of equity contributions by 5 September 2025 and, if not, transfer its 1/3 interest in Tower 1 Hotel at the Gold Coast to them.
But Star can retain the $35 million prepayment of the net sale proceeds from apartments in the Tower 2 development on the Gold Coast and the partners are required to reimburse $1 million as their share of equity contributions made by Star since 7 March 2025.
The termination also meant Star retained 50% of the Destination Brisbane Consortium (DBC) and one-third of the Destination Gold Coast Consortium (DGCC) along with the Treasury Brisbane hotel and car park, and 50% of the Charlotte Street Car Park (Festival), and it would continue to operate the Brisbane venue.
The parent company guarantee in relation to Star’s 50% share of the DBC $1.4 billion debt facility will remain in place and Star will continue to be responsible for its share of future equity contributions to DBC, estimated to be about $200 million.
“Additional equity may also be required as part of the refinancing of the DBC debt facility which is due to expire in December 2025,” it said.
The company said it was considering what alternative options may be available in relation to its 50% interest in DBC, the Treasury Brisbane hotel and car park and its 50% interest in the Charlotte Street Car Park.
Earlier this week Star announced a loss of $27 million before interest, tax, depreciation and amortisation for the fourth quarter of the 2025 financial year (Q4 FY25), up from a loss of $24 million in Q3, on revenue which was steady at $270 million.
“The result for the period reflects continued softness in operating performance due to the ongoing challenging operating environment including the impact of mandatory carded play and cash limits in NSW and stricter regulatory requirements across all properties,” Star said in an ASX announcement.
The company said its ability to continue as a going concern was dependent on several key matters and it had available cash at 30 June 2025 of $234 million.
At the time of writing Star (ASX:SGR) shares were 0.8 cents (7.27%) lower at 10 cents, capitalising the company at $301.21 million.
