Star sells landmark Treasury building amid financial difficulties
Date: 2024-09-10 Author: Leon Pierce Categories: CASINO
The Star Entertainment Group has agreed a deal with Griffith University to sell its leasehold interest in Brisbane’s historic Treasury Building for A$67.5 million (US$45 million). The sale is a significant step for both parties, with the casino raising much-needed capital and the university transforming the landmark building into an educational institution.
Treasury to be sold to fund new Queen’s Wharf project
The closure of the Treasury Casino comes as The Star prepares to launch its new A$3.6 billion (US$2.4 billion) Queen’s Wharf project, which includes a new casino. That project is currently awaiting regulatory approval. The sale of the Treasury Building is part of the company’s strategy to address financial difficulties, including debts of more than A$1 billion (US$666.7 million). The sale is expected to raise about A$60.7 million (US$40.5 million) for The Star, with the deal expected to be completed by the end of September if authorities give the go-ahead.
The sale of the building also follows a series of crises facing the company, including mounting debt and regulatory breaches. The Star has been forced to seek capital raising, including selling key assets, to cope with market challenges. The company has also asked the Queensland government for tax breaks to support its Queen’s Wharf business, which is key to The Star’s future.
The company’s financial problems have been exacerbated by investigations in New South Wales. The state authorities have been investigating whether The Star is fit to retain its casino licence. The findings of the second investigation have only added to the pressure on the company. The Star missed the financial filing deadline, which resulted in the shares being suspended on the Australian Securities Exchange (ASX).
CEO on Treasury sale and company restructuring
Despite the many challenges, Brisbane-based The Star CEO Daniel Finch was optimistic about the sale of the Treasury building. He told Business News Australia that it had been a privilege for the company and its staff to manage the heritage building for nearly 30 years. He acknowledged that parting with such an iconic building was difficult, but stressed that the sale would allow Treasury to continue to serve the community, albeit in a new capacity.
The sale of the Treasury building is part of a wider restructuring strategy for The Star, which has high hopes for the success of the Queen’s Wharf project. The proceeds from the sale will help the company in the short term, but The Star still faces many challenges, including further asset sales and negotiations with government agencies to stabilise its financial position.
