Star Entertainment Sells Brisbane Treasury Building Lease After Shuttering Casino
Posted on: September 9, 2024, 08:27h.
Last updated on: September 9, 2024, 09:56h.
Embattled Australian casino operator Star Entertainment confirmed on Friday its intent to sell its leasehold interest in the Brisbane Treasury Building. The news comes roughly two weeks after Star closed the casino the company run from inside the historic building for nearly 30 years.
The Star Entertainment Group says it’s selling the leasehold interest in the former government administration building to Griffith University. The South Queensland school will refit the historic complex into a hub for its business, information technology, and law disciplines.
Star is selling the lease for AU$67.5 million (US$44.9 million) and will net roughly $60.7 million after settlement adjustments. The transaction is expected to close before the month’s end.
It has been a privilege for our company and team members to be the caretaker of the much-loved heritage building for almost thirty years. We are delighted to hand the baton to Griffith University, knowing the Treasury Building is in the safe hands of another proud Queenslander which respects its history as much as we have,” said Star Brisbane CEO Daniel Finch.
“As a neighbor just up the street at The Star Brisbane at Queen’s Wharf, it will be exciting to watch the story of the Treasury Building evolve, continuing to provide unique experiences and memories for future generations,” Finch added.
In Australia, a Crown leasehold provides a tenant “ownership” in a property over many years, generally in 99-year terms. The property, however, remains under the control of the Queensland Government.
Cash Needed
The Star is in need of quick cash as the group’s finances remain in disarray after investing AU$3.6 billion to relocate its Brisbane casino a block east to a new integrated resort. Star additionally remains the subject of suitability probes, with a second inquiry in New South Wales (NSW) recently concluding that the company remains unfit to possess a gaming license.
The Star Sydney casino, which holds NSW’s only slots license — commonly called poker machines or “pokies” Down Under — remains operational until the NSW Independent Casino Commission determines a remedial course. The NSW findings resulted in Star suspending its trading on the Australian Securities Exchange and postponing the disclosure of its annual report that was set for release on August 30.
Star is reportedly in need of AU$300 million in short-term funding to keep its Queens Wharf operation along the Brisbane River afloat. Star is seeking tax breaks and other government relief, something it’s likely to receive because the government is unwilling to jeopardize thousands of jobs and the associated reduced economic activity that would result in The Star Brisbane closing.
The worst case scenario would be that they have to close their doors not long after opening them,” Queensland Premier Steven Miles said last week. “This is a fantastic asset for our city. It is a big job generator. It is a major attraction.”
Star owes its lenders AU$450 million. Its creditors are demanding that any new loans must come with government concessions.?
Gold Coast Appointment
Star announced Monday that it poached Mark Mackay away from rival Crown Resorts to lead its Gold Coast casino. The Star Gold Coast is located in Queensland’s Broadbeach.
Beginning September 10, Mackay will become chief executive officer of the resort. Mackay arrives with more than 18 years of experience running integrated resorts and casinos, most recently serving as chief operating officer of Crown Melbourne.
Before joining Crown in 2017, Mackay was COO of The Star Gold Coast, which at the time was known as Jupiters Hotel and Casino.
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