Star exits Queen’s Wharf; Hong Kong partners take over
Australia’s Star Entertainment Group has completed its long-anticipated exit from the Queen’s Wharf development in Brisbane. The company is formally transferring its 50 percent stake to Hong Kong-based partners Chow Tai Fook Enterprises (CTFE) and Far East Consortium (FEC).
The transaction, finalised this week and disclosed to the Australian Securities Exchange, brings an end to more than a year of negotiations that began in early 2025. Under the new structure, CTFE and FEC now each hold a 50 percent share in the Destination Brisbane Consortium, the entity that owns and operates the multibillion-dollar integrated resort.
Previously, Star had been the majority stakeholder, while its partners each held a quarter share. The reshuffle also includes the transfer of Star’s interests in associated assets such as the Treasury Hotel and key car park facilities in the city.
The deal is expected to generate approximately AUD53 million ($36.6 million) for Star. In addition, Star will retain exposure to the Gold Coast market through hotel interests near its existing casino operations.
According to local media reports, CTFE and FEC have both emphasised their long-term commitment to the development, positioning Queen’s Wharf as a flagship destination ahead of Brisbane’s hosting of the 2032 Olympic and Paralympic Games.
Despite earlier concerns about CTFE’s historical links to controversial figures, the Queensland government approved the transaction following regulatory review. According to reports, authorities concluded that there was insufficient evidence to establish intentional misconduct, clearing the way for the deal to proceed.
Operator retains role but on significantly lower terms
Although Star has exited its equity position in Queen’s Wharf, it will continue to operate the casino under a revised management agreement, albeit on far less lucrative terms than initially anticipated.
The company is set to receive around AUD18 million ($12.4 million) annually, or roughly AUD1.5 million ($1 million) per month, to manage the complex. This represents a steep reduction from earlier proposals that had suggested monthly fees of up to AUD5 million ($3.5 million), with potential increases over time.
The agreement also includes provisions allowing CTFE and FEC to terminate Star’s management rights with three months’ notice if performance expectations are not met, leaving open the possibility of a future operator stepping in.
Queen’s Wharf development costs escalated by more than AUD1 billion ($691.3 million), while the project accumulated approximately AUD1.4 billion ($967.8 million) in debt, liabilities that will now sit with the new owners.
Star’s broader challenges extend beyond this single development. The company has been grappling with declining revenues, partly due to the loss of high-rolling international customers and intensified scrutiny over anti-money laundering (AML) compliance.
In recent months, Star has taken steps to shore up its balance sheet, including refinancing arrangements worth AUD550 million ($380.2 million) with US-based private credit firm Whiteawk Capital Partners. This replaced earlier lending facilities that had become increasingly costly to maintain.
The company’s ownership structure has also evolved, with control passing to Bally’s Corporation and the Mathieson family late last year. Meanwhile, its share price has fallen dramatically from previous highs, reflecting investor concerns about its financial outlook.
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