Far East, Chow Tai Fook revive deal for Star's Queen's Wharf casino stake

Far East Consortium International (0035) and Chow Tai Fook Enterprises have revived a sidelined deal to receive Australian casino operator The Star Entertainment Group's 50 percent stake and management rights in the A$3.6 billion (HK$18.37 billion) Queen’s Wharf Brisbane integrated resort project.

Shares of Far East Consortium resumed trading on Tuesday afternoon, closing up 3.75 percent.

According to the announcement on Tuesday, the binding agreement follows a breakdown in negotiations earlier this month, with Star agreeing to orderly exit the Brisbane project under transition principles agreed by all parties. 

The sale consideration is A$53 million, with A$45 million already paid by the Hong Kong partners in March. Star had begun returning this amount after talks stalled on August 1, but will now repay the funds to the investors.

The QWB project was developed by Destination Brisbane Consortium and is currently managed by Star but faces operational challenges. Upon completion of the transaction, DBC will be equally owned by Far East Consortium and Chow Tai Fook Enterprises. 

The deal remains subject to approvals from Queensland government financiers and regulatory authorities.

Far East Consortium emphasized the agreement safeguards ongoing casino operations and protects thousands of jobs in Brisbane’s city center. With Brisbane preparing to host the 2032 Olympic and Paralympic Games, the project is expected to create lasting value for Queensland residents.

STAFF REPORTER