Australian gambling giant The Star Entertainment's plan to sell its 50% stake in the large Brisbane integrated resort project faces the risk of falling through. The joint venture partners, Chow Tai Fook Enterprises and Far East Consortium, have formally issued a termination notice to The Star, which will automatically void the agreement if The Star does not withdraw the notice by July 7.
According to disclosures to the Australian Securities Exchange (ASX) by The Star, the parties signed a binding Heads of Agreement (HoA) in March 2025, originally planned to finalize the formal agreement by the end of April. However, due to severe disagreements on key terms, the deal has been deadlocked.
The Star originally intended to shift its focus to the Gold Coast operations after exiting the "Destination Brisbane Consortium" (DBC) project, reallocating resources to address its current financial difficulties. Despite continued negotiations after the shareholder meeting on June 25, the core commercial conditions remain difficult to reconcile.
Meanwhile, The Star has completed the sale of a convention center asset worth AUD 58 million and received an injection of AUD 133 million from Bally’s Corporation and Investment Holdings, providing support for the company's short-term finances.
If the transaction ultimately fails, it will not only disrupt The Star's asset restructuring plans but may also impact its future financing and strategic adjustment paths. The company stated that it will immediately announce any significant changes in the agreement situation or if the joint venture partners revoke the termination decision.
As the July 7 deadline approaches, the capital struggle around the Brisbane project is rapidly escalating, and whether The Star will completely lose control of the project has become a focal point of high interest in the Australian gambling industry.
