Star Entertainment puts Treasury Casino and Hotel buildings up for sale
Star Entertainment is hoping for $200 million from the sale of its Treasury Casino and Hotel buildings in Brisbane.
The embattled entertainment giant wants to stabilise operations through the sale, as it continues to recover from a range of setbacks including hefty fines for breaches of gaming rules and money laundering and Charter Hall’s June exit from a long-term deal to buy the Brisbane site.
Charter Hall pulled out of the $248 million deal to buy the heritage listed Casino and Treasury Hotel buildings and the Queen’s Gardens Car Park on George St, saying conditions of sale were unmet.
The deal was supposed to settle in the first half of 2023.
To combat its issues, On September 25 Star announced the following capital structure initiatives:
- Equity Raising: $750 million equity raising, comprised of a ~$589 million 1 for 1.65 pro rata accelerated non-renounceable entitlement offer and a ~$161 million institutional placement; and
- New Debt: $450 million of new debt facilities provided by Barclays Bank PLC and Westpac Banking Corporation comprised of a $150 million four-year revolving credit facility and a $300 million four-year underwritten term loan.
The sale of the Brisbane site, which is being facilitated by McVay Real Estate and JLL, is being conducted via an expression of interest campaign.
Star is set to open its new casino at the Queen’s Wharf precinct, with the buyer of the Brisbane site given an opportunity to have vacant possession of the heritage-listed Treasury Casino building, the Treasury Hotel building and the Treasury Car Park, which span two city blocks.
The opening of the new casino and revitalisation of the Queen’s Wharf precinct as a go-to entertainment and retail district comes ahead of the 2032 Olympic and Paralympic Games.
Jonathan Jackson, 4th October 2023
