Star Entertainment Group has secured a vital financial lifeline through a deal with its Hong Kong-based investors, Chow Tai Fook Enterprises and Far East Consortium, averting potential voluntary administration. The agreement involves the disposal of Star’s Brisbane-based casino and a loan of up to $50 million from the Hong Kong investors, who are also partners in Brisbane’s Queen’s Wharf precinct. This arrangement effectively hands control of the Queensland casino to Chow Tai Fook Enterprises and Far East Consortium.
The deal follows months of efforts by Star CEO Steve McCann to address cost overruns at the Brisbane casino and navigate challenges stemming from stringent regulatory measures that have impacted high-roller activity. McCann had been pursuing both a short-term loan and access to $60 million from the sale of Star’s Sydney events center, which is currently held in escrow. While the short-term loan from Chow Tai Fook Enterprises and Far East Consortium is secured, the release of the $60 million remains pending. McCann continues to seek a long-term refinancing solution for the broader casino group.
The agreement surfaces a month after reports indicated Star was contemplating relinquishing ownership of its Brisbane casino. Flagstaff Partners advised Chow Tai Fook Enterprises and Far East Consortium on the deal.
