Star Completes Brisbane Casino Stake Sale to Ease Debt Burden
Posted on: April 1, 2026, 04:20h.
Last updated on: April 1, 2026, 04:20h.
- Star sells Brisbane stake at fire-sale price to ease debt burden
- Deal eliminates $1.4bn debt but cuts long-term revenue potential
- Gold Coast consolidation follows Bally’s-backed rescue and refinancing efforts
Star Entertainment (ASX: SGR) has officially disposed of its ownership of the $3.6 billion Queen’s Wharf Brisbane, selling its 50% stake for just $53 million to its joint venture partners in the casino and entertainment complex, Chow Tai Fook Enterprises (CTFE) and Far East Consortium International (FEC).
Despite what some analysts have described as a fire-sale deal, the agreement is seen as a crucial boost for Star, which has struggled through a severe financial crisis in recent years.
Raw Deal?
The terms are a mixed bag for the company. On one hand, it will allow it to eliminate a debt burden of AU$1.4 billion (US$900 million) tied to the Brisbane development, while also securing a monthly operating fee for continuing to manage its casino. But that fee, AU$18 million per year, is far short of the $60 million that was negotiated last year.
Star could also earn a performance-based incentive fee based on gaming revenues, but at the same time CTFE and FEC have the right to terminate the management contract at any time with just 90 days’ written notice.
Star had been in talks with CTFE and FEC since February 2025, and at times the deal appeared to be on the ropes, with the buyers threatening to walk.
The second stage of the transaction will see the transfer of CTFE’s and FEC’s interests in the Star Gold Coast casino – around an hour’s drive south of Brisbane – to Star, essentially consolidating the company’s Queensland operations around a single asset.
The deal has also helped Star secure a $550 million refinancing package as part of an agreement struck in February with US credit investor WhiteHawk Capital Partners to restructure existing debt and boost short-term liquidity.
Insolvency Averted
Star’s financial troubles stemmed from the scrutiny it faced in multiple jurisdictions for anti-money laundering (AML) breaches and deficiencies in corporate governance. This led to license suspensions and the collapse of its high-margin VIP gambling business following a crackdown on junket operators.
At the same time, the company was highly leveraged, with a heavy debt burden tied to the multi-billion-dollar Brisbane development.
At its lowest point, in late February 2025, Star held just AU$79 million (US$52 million) in cash, just enough to sustain operations for another week.
Insolvency was averted in November 2025, when a AU$300 million (US$195 million) capital injection from Bally’s Corporation (NYSE: BALY.T) and the Mathieson family, the company’s largest existing investor, was completed. The deal left Bally’s with about 38% of Star and the Mathiesons’ Investment Holdings with roughly 23%.
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