The Star will exit its half-ownership of Queen’s Wharf Brisbane, as Hong Kong’s Far East Consortium and joint-venture partner Chow Tai Fook Enterprises enter a binding agreement to acquire its stake in the entertainment and hospitality precinct, as well as the city’s Treasury hotel and car park.
The deal, which is designed to help The Star avoid administration, includes two towers in Broadbeach Island on the Gold Coast and a $53 million cash payment.
Queen’s Wharf Brisbane is being delivered by Destination Brisbane Consortium and is currently managed by The Star.
To ensure the precinct remains open and to guarantee employment of 2700 workers, Far East Consortium and Chow Tai Fook Enterprises have negotiated a deal with The Star to exit its 50 per cent stake of Destination Brisbane Consortium and provide transitional management services.
Following completion of the transaction, Destination Brisbane Consortium will be jointly owned by Far East Consortium and Chow Tai Fook Enterprises – each previously had a 25 per cent stake in Queen’s Wharf Brisbane.
As part of the transaction, the new owners will need to secure approvals and consents from Destination Brisbane Consortium’s lenders, the Office of Liquor and Gaming Regulation and the Queensland Government.
“Far East Consortium is committed to Queen’s Wharf Brisbane, its employees and the state of Queensland,” says Wendy Chiu, executive director and joint managing director of Far East Consortium.
“This transaction aims to secure Queen’s Wharf Brisbane’s future viability and that of the many local businesses that rely on this world-class tourism, leisure and entertainment destination.
“We are excited for the future of this precinct under joint ownership with our long-term strategic partner, Chow Tai Fook Enterprises, and look forward to working with all key stakeholders, especially the Queensland Government, Office of Liquor and Gaming Regulation, and Destination Brisbane Consortium’s approximately 2700 employees, to transition ownership and management during the next 12 months.”
Other details in the agreement include:
- Far East Consortium and Chow Tai Fook Enterprises acquiring strategic assets from The Star, namely its 100 per cent interest in Treasury Hotel; 100 per cent interest in Treasury Car Park; and 50 per cent interest in Festival Car Park, all located a short distance from Queen’s Wharf Brisbane.
- The Star will acquire Far East Consortium and Chow Tai Fook Enterprises’ 66.67 per cent stapled equity interest in the Gold Coast Project, consisting two hotel towers in Broadbeach Island.
- Far East Consortium and Chow Tai Fook Enterprises will pay The Star $53 million in cash, payable in several tranches during the 2025 calendar year.
- The Star will provide management services to Queen’s Wharf Brisbane for a transitional period to 31 March 2026.
The Star is also in discussions to secure a $250 million bridge loan from US-based financier King Street Capital Management, with another $750 million loan possibly in the works through an unnamed source.
These loan deals combined with the Queen’s Wharf Brisbane sale and offloading its events centre at The Star in Sydney for $60 million are reportedly enough for the company to stave off collapse as it faces debts of more than $400 million.
