The Star Entertainment Group has decided to roll the dice and sell its leasehold interest in Brisbane’s historic Treasury Building to Griffith University. This deal, ringing in at a cool AUD67.5 million ($45 million), marks a powerhouse move for both The Star and the prestigious university. On one hand, the casino conglomerate is looking to replenish its coffers, while on the other, Griffith University envisions transforming this iconic edifice into a vibrant center of academia.
The Star Finalizes Treasury Casino Property Sale to Fund Queen’s Wharf Development
The sale is the final ace up The Star’s sleeve following the closure of the Treasury Casino in August 2024. As the chips fall, The Star is eyeing its new AUD3.6 billion ($2.4 billion) Queen’s Wharf project, pending regulatory blessings. Strategically, this move is part of a grander scheme for The Star to stave off its financial woes, which include a staggering debt exceeding AUD1 billion ($666.7 million). The company has its fingers crossed, betting on approximately AUD60.7 million ($40.5 million) from the sale—a wager that rests on governmental approval by the end of September.
This calculated decision to offload the Treasury property follows a series of double-downs with financial and regulatory obstacles. The Star has been hitting hard times, facing relentless scrutiny and a slew of compliance issues. They’ve been forced into a corner, exploring every avenue to raise capital, including liquidating key assets to weather the market storm. Amid the turmoil, The Star has been negotiating with the Queensland Government for tax reliefs to keep their operations afloat in the essential Queen’s Wharf precinct, a linchpin in the company’s survival strategy.
The Star’s financial hunger games have been exacerbated by government probes in New South Wales, scrutinizing the very viability of their casino license. These probe spectacles in NSW have left bruises, culminating in missed financial reporting deadlines and the Australian Securities Exchange (ASX) pulling the plug on The Star’s stock trading. Such dark clouds have cast long shadows over the company’s fiscal stability.
The Star’s CEO Discusses the Treasury Building Sale and Its Role in Company Restructuring
Amidst the choppy waters, The Star Brisbane CEO Daniel Finch maintains a hopeful stance about the Treasury Building sale. In an emotionally charged dialogue, as reported by Business News Australia, Finch reflected, “It’s been an honor for both our company and staff to manage this heritage-listed gem for nearly three decades.” Finch acknowledged the poignant farewell to such a celebrated landmark, yet noted the solace in knowing the building would continue to serve the community in a fresh, invigorating capacity.
The sale of the Treasury Building fits snugly into The Star’s broader, multifaceted blueprint to reforge the company’s destiny. The future cards are firmly stacked on the success of the Queen’s Wharf venture. While the cash infusion from the Treasury Building sale provides a temporary bankroll, The Star faces a steep uphill battle, needing to divest more assets and maintain dialogues with government bodies to reclaim solid financial footing. This sale is but one hand in a high-stakes game of corporate restructuring and survival.
