Media Statement from Far East Consortium (FEC)
The Star to exit its 50% ownership of Queen’s Wharf Brisbane to preserve continuity of this world-class integrated resort and approx. 2,700 jobs
8 March 2025
FEC together with its joint venture partner Chow Tai Fook Enterprises (CTFE) (together the JV Partners) today entered into a binding heads of agreement with Star Entertainment Group Limited (The Star) which will result in The Star exiting its ownership and management of the Queen’s Wharf Brisbane (QWB) integrated resort in an orderly fashion and in accordance with an agreed transition plan.
QWB is a premium entertainment and hospitality precinct that has enlivened the Brisbane CBD and delivered thousands of jobs and much needed residential apartments. It will attract visitors and attention from all over the world in the lead up to the 2032 Brisbane Olympic and Paralympic games.
QWB is being delivered by Destination Brisbane Consortium (DBC) and is currently managed by The Star, which has been facing short-term liquidity challenges. To ensure the continuity of QWB and approximately 2,700 jobs, the JV Partners have negotiated a deal with The Star to exit its 50% stake of DBC and to provide transitional management services. Following completion of the transaction, DBC will be jointly owned by FEC (50%) and CTFE (50%).
As part of the transaction, the JV Partners will need to secure certain approvals and consents from DBC’s lenders, the Office of Liquor and Gaming Regulation (OLGR) and the Queensland Government.
Further details of the agreement are outlined below.
Wendy Chiu, Executive Director and Joint Managing Director of FEC said,
“Far East Consortium is committed to Queen’s Wharf Brisbane, its employees and the State of Queensland. This transaction aims to secure QWB’s future viability and that of the many local businesses that rely on this world-class tourism, leisure and entertainment destination. We are excited for the future of this precinct under joint ownership with our long-term strategic partner, Chow Tai Fook Enterprises, and look forward to working with all key stakeholders, especially the Queensland Government, OLGR and DBC’s approximately 2,700 employees, to transition ownership and management over the next 12 months.”
The JV Partners are being advised by Flagstaff Partners, a leading corporate finance adviser.
Details of the agreement:
- The Destination Brisbane Consortium (DBC) has been responsible for developing the Queen's Wharf Brisbane (QWB) Project. Prior to this agreement, DBC’s ownership compromised of The Star (50%), FEC (25%) and CTFE (25%). Following completion of the transaction, DBC’s ownership is to be compromised of FEC (50%) and CTFE (50%).
- FEC and CTFE (the JV Partners) will acquire The Star’s 50% stapled equity interest in the QWB Project and The Star has agreed to terminate the casino management agreement in relation to QWB in an orderly fashion and in accordance with an agreed transition plan.
- The JV Partners will acquire Strategic Assets from The Star, namely The Star’s 100% interest in the Treasury Hotel, 100% interest in the Treasury Car Park, and 50% interest in the Festival Car Park, all of which are located in close proximity to QWB and have strategic importance to the integrated resort.
- The Star will acquire the JV Partners 66.67% stapled equity interest (in aggregate) in the Gold Coast Project, consisting of two hotel towers in Broadbeach Island, Gold Coast, Queensland, Australia, being Tower 1 (Dorsett) and Tower 2 (Andaz).
- The JV Partners will pay The Star A$53 million in cash, payable in several tranches over calendar year 2025, with the first tranche of A$35 million paid on signing. The net cash consideration will be A$45 million, after it is offset by certain reimbursements.
- To ensure continuity, The Star and its QWB employees will continue to manage QWB under a new service agreement with DBC. The Star will provide management services to the property over a transitional period through 31 March 2026 (unless extended by the JV Partners).
- The agreement is subject to certain conditions and approvals, including from DBC’s lenders, OLGR and the Queensland Government.
END
Contact details:
hello@fcr.com.au
