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The Star Entertainment Group’s (SEG) attempt to sell its stake in the Brisbane Queen’s Wharf project has fallen through, leaving the company facing tens of millions in financial obligations. The proposed deal with joint venture partners Chow Tai Fook Enterprises Limited and Far East Consortium International Limited has officially been terminated.
Good to know
- SEG now owes around AUD $41 million in repayments and reimbursements.
- The group remains tied to a AUD $1.4 billion debt facility.
- An extension request was denied by SEG’s joint venture partners.
SEG confirmed in a filing to the ASX that the Heads of Agreement (HoA) between the parties could not be finalized due to unresolved commercial issues. SEG had proposed extending the termination date to August 6, 2025, to keep talks alive, but the offer was rejected. As a result, the termination notice took effect on July 31, ending the HoA.
The fallout means SEG must repay AUD $10 million in proceeds it received from its partners by August 6. On top of that, it will need to reimburse approximately AUD $31 million in equity contributions made by its partners to the Destination Brisbane Consortium (DBC) since March 31. That payment is due by September 5.
The company will also continue to hold a 50% share in the DBC debt facility, currently estimated at AUD $1.4 billion, and is still on the hook for future equity contributions. Those are estimated at around AUD $200 million, though that figure may increase depending on how the consortium’s refinancing plans unfold. The DBC debt facility is scheduled to mature in December 2025.
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Despite the breakdown of the deal, SEG indicated in its ASX statement that it remains in contact with its partners and may explore other ways to handle its 50% stake in DBC. That includes potential plans for its interests in Treasury Brisbane hotel, car parks, and the Charlotte Street Car Park (Festival).
SEG also noted it would provide updates if any major changes occur regarding its role in the Queen’s Wharf project or related assets.
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