Star Entertainment Group Ltd, one of the biggest casino operators in Australia recently confirmed that it has been formally allotted a casino license by the state government to develop a casino in Queen’s Wharf, Brisbane. Brisbane is the capital city of the state of Queensland.
Star Entertainment submitted a filing with the Australian Securities Exchange last week and confirmed that it had officially received the casino license.
The filing stated that the license allowed them to open the casino to the public only when the construction phase was fully completed.
The license will be issued by the Queensland government to a joint venture entity in which Star Entertainment has a 50 percent stake. The joint venture entity, called Destination Brisbane Consortium, comprises Chow Tai Fook Enterprises Ltd and Far East Consortium (Australia) Pty Ltd, part of Far East Consortium International Ltd and Star Entertainment which was earlier known as Echo Entertainment.
Brisbane New Queens Wharf Casino Precinct
The total capital investment for the project that will be put up by the joint venture is around AUD $3 billion and will be split evenly between Star Entertainment and the other two partners. The planned casino resort will have a casino, hotel facilities as well as a residential complex.
According to the filing submitted, the issuance of the license triggers the provision that requires the consortium to make a payment of AUD $213 million to the Queensland Government. Star Entertainment’s share of this payment would amount to AUD $77 million and is expected to be paid by October 27. The license issued to the consortium is for a period of 99 years and includes an exclusivity clause spanning 60 kilometers around Brisbane’s central business district for a period of 25 years from the commencement of gaming operations.
The consortium won the license last year in November 2015 beating James Packer’s Crown Resorts. The proposal for the casino development in Queen’s Wharf, Brisbane is to develop an AUD $2 billion casino and hotel facility that will include a 1,100-room luxury hotel while AUD $900 million will be invested towards the development of a residential complex with over 2,000 apartments. Construction on the site is expected to commence by 2017 and the casino is likely to open in 2022.
The casino development is part of the Queensland government’s plan to develop the state as a destination for wealthy Chinese tourists and build facilities and attractions that can compete with the top casinos located in Macau and Las Vegas. Star Entertainment has witnessed a strong growth with its net profit seeing a growth of 14.8 percent in 2015.