The Star Entertainment Group has finally reached an agreement with its joint venture partners regarding the Queen’s Wharf Brisbane and Gold Coast resorts.
However, the Australian casino operator may not be paid much to run the Queen’s Wharf Brisbane integrated resort following adjustments made to the fixed monthly operator fee of the establishment.
Chow Tai Fook Enterprises Limited (CTFE) and Far East Consortium International Limited (FEC) have entered into binding long-term documentation with The Star, which is now under new management following the A$300m strategic investment from Bally’s Corporation and Investment Holdings being completed late last year.
Stage one of the deal allows The Star to offload its 50% equity interest in Destination Brisbane Consortium (DBC), the Queen’s Wharf resort. Stage two is related to the Destination Gold Coast Consortium (DGCC) and other Brisbane properties that are owned or partially owned by the operator.
The Star has now gained complete ownership of The Star Gold Coast assets, while CTFE and FEC will take control of the Treasury Hotel and the Charlotte Street Car Park, which are located near Queen’s Wharf resort.
$1.5m monthly fee?
In accordance with the transaction documents, the operator has completed the offload of its 50% DBC equity interest. In connection with this, the fixed monthly operator fee agreed between the parties under the DBC casino management agreement (CMA) has been adjusted and finalised.
From today, the DBC casino operator fee payable to The Star will be a fixed annual AUS $18m fee payable monthly (A$1.5m monthly), alongside a performance-based incentive fee comprised of two components, each based on EBITDAM.
The DBC also holds a performance termination right, allowing it to terminate the CMA in certain circumstances based on performance, on not less than 90 days’ written notice.
Besides these points, the key terms of the transaction remain unchanged in all material respects.
Completing stage one, the offload of Queen’s Wharf resort, satisfies the terms of the refinancing deal The Star agreed with WhiteHawk Capital Partners last month. The guarantee provided by the company under the Queen’s Wharf debt facilities will now be fully released.
As for stage two, DGCC and other Brisbane properties owned or partially owned by The Star, the operator added that it continues to work towards its completion. Conditions precedent are expected to be satisfied during the second half of 2026 and no later than 31 March 2027.
The Star looks to ‘strengthen’ in 2026
The Star appears to be making good on its promises to investors after recently expressing optimism for the year ahead in March with its H1 FY26 results following a rollercoaster end to 2025.
The Star reported A$585m in H1 FY26 normalised net revenue and more than A$75m in net loss, with the new management making changes to its operational and marketing strategy, in addition to rolling out customer-focused initiatives and implementing further cost cuts.
Bruce Mathieson Jnr, Group Chief Executive Officer of The Star, stated: “Our corporate office is being streamlined, and essential support functions will be managed at the property level in Sydney, Gold Coast and Brisbane. To support long-term success, these changes will strengthen our financial position.
“We continue to pursue appropriate cost out initiatives and are exploring and implementing initiatives to attract customers to our properties. We are committed to pursuing a transparent, practical and sustainable pathway that ensures our remediation plan is delivered to the standard expected, while supporting consistency, embedment and demonstrable maturity across the group.
“We have immense potential in our properties, and we are committed to transforming The Star into premier entertainment destinations.”
Licence suspension extended
However, The Star Sydney’s casino licence suspension has also recently been extended by the New South Wales Independent Casino Commission (NICC). The NICC received a pathway-to-suitability submission from The Star Sydney on 12 March, where it was reaffirmed that it wouldn’t yet be seeking a licence determination.
A suspension has been in place on The Star Sydney for over three years, as the operator was determined to be no longer suitable for a casino licence after NICC-commissioned reviews by Adam Bell SC in October 2022 and August 2024 found several regulatory failures.
Nicolas Weeks was appointed as The Star Sydney manager to allow gaming operations to continue at the establishment. The current extension means the casino licence suspension will remain in place, with Weeks’ appointment extended until 30 September 2026 unless terminated at an earlier date.
