The sale of Treasury Casino and Hotel Brisbane by Charter Hall Group, an Australia-listed property trust fund, has been cancelled. The sale and partial leaseback of the assets to Charter Hall for AUD248 million was announced in October 2021. Charter Hall, on the other hand, cited failing to meet the terms within the stated timeframe as the basis for withdrawing from the transaction. In reaction to this unexpected development, the Star Entertainment Group is currently weighing its options.
The move by Charter Hall Group to cancel the sale of Treasury Casino and Hotel Brisbane has raised eyebrows in the industry. The AUD248 million transaction includes the Treasury Hotel, Treasury Casino, and the Queens Gardens parking park. The assets were destined for the flagship Charter Hall Prime Office Fund. Unfortunately, the terms of the agreement were not met by the deadline, prompting Charter Hall to deny an extension request.
Following the termination of the selling agreement, The Star Entertainment Group expressed its dissatisfaction and indicated that it is presently weighing its options in light of Charter Hall’s decision. The casino operator owns and operates The Star Sydney casino hotel in New South Wales, as well as The Star Gold Coast casino hotel in Queensland. The company is also working on the Queen’s Wharf Brisbane project in collaboration with partners Chow Tai Fook Enterprises Ltd and Far East Consortium International Ltd.
The Queen’s Wharf Brisbane project has been delayed several times and is presently set to open in April 2024. Meanwhile, The Star Entertainment Group obtained AUD800 million in new funding in March to support its strategic initiatives and satisfy capital needs. Separately, the firm said that it had been granted a temporary reprieve from a hefty tax rise on gaming revenue at its Sydney casino. The New South Wales government has delayed the tax increase to allow for continued talks with the casinos.
The Star Entertainment Group applauded the move to postpone the tax rise. The company’s managing director, Robbie Cooke, expressed gratitude for the ongoing conversations with the New South Wales government. Cooke criticized the initial tax hike proposal, saying it lacked engagement and failed to take into account the financial viability of the Sydney business. He emphasized that if the new duty is imposed as planned, it might jeopardize the jobs of up to 4,000 employees and have a substantial impact on the Sydney business’s economic survival.
The termination of the sale agreement for Treasury Casino and Hotel Brisbane adds to The Star Entertainment Group’s difficulties. The corporation had already been attempting to refinance current debt and increase covenant space. The ambiguity surrounding the termination, as well as the possibility of rising casino duty rates in New South Wales, add to the dangers of successfully completing these financial processes.
The post Charter Hall Terminates Sale of Treasury Casino and Hotel Brisbane appeared first on iGaming.org.