Troubled casino and resort group Star Entertainment’s partners are reported to have cancelled the development of a tower at their $3.6 billion Queen’s Wharf development in Brisbane.
Hong Kong-based Chow Tai Fook Enterprises and Far East Consortium were unable to undertake the development of the Queen’s Wharf Tower under “current cost or time constraints” due to cost increases and supply chain issues, The Australian newspaper reported.
The two companies had advised the apartment buyers of the decision in December, forcing the cancellation of sales contracts and the return of deposits of more than $400,000 each for those who did not want to renew their contracts.
“After careful consideration, we are seeking a 12.5% price increase while maintaining the initial deposit,” the companies were quoted as telling buyers.
According to the Queen’s Wharf Tower website, the 819 apartments in the tower are sold out and early works have commenced.
It was described as mixing luxury retail, dining, entertainment and accommodation with premium residences on levels 49-70 selling from $2.92 million $3.43 million.
Azzet contacted Chow Tai Fook Enterprises and Far East Consortium for comment but by the time of publication had received no response.
Chow Tai Fook and Far East own a combined 50% of the adjacent Queen’s Wharf casino complex, with the balance owned by Star Entertainment, which has no involvement in the tower but is running out of cash and unlikely to survive more than a few weeks unless urgent action is taken.
The Australian Financial Review has reported that Star has discussed with Chow Tai Fook and Far East the possibility of them buying a larger stake in the casino complex.
At 1:50 pm AEDT (2:50 am GMT) shares in Star were unchanged at 12 cents, valuing the company at $344.4 million.
Related content
