Australia’s Star Entertainment Group has reportedly enlisted agents as it renews efforts to sell its Treasury hotel and casino in Brisbane.
The Australian Financial Review reports that the embattled casino operator is expecting offers of more than AU$200 million for the property, which would include the Treasury Casino building, Treasury Hotel building and the associated car park. All are set to be vacated once Star opens its adjoining AU$3.6 billion Queen’s Wharf Brisbane development in April 2024.
“The combination of Treasury Brisbane’s historical significance, character aesthetic and location adjoining the Queen’s Wharf precinct, make it a truly exceptional opportunity,” said Sam McVay from McVay Real Estate, one of those appointed to pursue a sale. “The next iteration of these culturally significant assets will undoubtedly make them Brisbane icons.”
Although Star said recently that it wanted to retain its “strategic world-class assets” and explore “asset sale alternatives” amid suggestions it may pursue an asset-light strategy similar to that employed by US casino giant MGM Resorts, it is believed Star’s comments primarily refer to its long-time flagship, The Star Sydney.
In Queensland, Star has already reached an agreement to sell one of its Gold Coast hotel assets, the Sheraton Grand Mirage Resort Gold Coast, for AU$192 million (US$128 million).
It had also agreed a sale and leaseback deal with an investment and funds management firm that would have seen it sell the Treasury Brisbane assets for AU$248 million (US$169 million) and lease back the hotel and carpark for an initial term of 30 years, with two additional 15-year options, however this fell through in June.
Star reported in August a net loss of AU$2.44 billion (US$1.57 billion) for the year ended 30 June 2023 on regulatory impairments related to inquiries held in NSW and Queensland over the past 12 months. It has also embarked on a series of equity raising initiatives, including an entitlement offer announced only last week.
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