Buyer pulls out of $248m deal to buy Treasury Casino and Hotel in Brisbane, Australia

The Star Entertainment Group may be looking for a new buyer for its Treasury Casino and Hotel buildings in Brisbane after Charter Hall backed out of a long-term deal.

The latest setback follows The Star pushing back its opening date for the $3.6bn Queen’s Wharf to next year while the entertainment giant’s battle with the NSW Government over a proposed rise in casino duty has ramped up with claims it will cost jobs.

The deal was due to settle in the first half of 2023 and was dependent on a number of conditions.

The Star said it was considering its options after being advised that Charter Hall no longer intends to proceed with the proposed transaction.

“The basis for this is that the conditions have not been satisfied by the relevant date under the terms of the contracts,” it said.

At the time of the original announcement Charter Hall managing director David Harrison said

it was a strategic purchase because they also owned Brisbane Square, at 266 George St, effectively giving them four major assets in a line.

The Star chief executive Robbie Cooke said on Tuesday that the proposal by the former NSW Government to increases casinos duty could cost jobs at its Sydney casino.

“This proposed duty increase was policy on the run by the former Treasurer, was ill-conceived with no consultation and had no regard to the capacity of our Sydney operation to afford the impost,” he said.

“If implemented as originally proposed, the additional duty would significantly challenge the economic viability of the Sydney business and put the jobs of up to 4,000 hard working Sydney employees in jeopardy.”

Mr Cooke said The Star intends to continue its engagement with NSW Treasury and the Government on the proposal, seeking to secure outcomes regarding the future of its Sydney employees.

“We will continue to engage with the new NSW Government to guarantee the jobs of our team members while working hard to implement the significant reforms required to restore The Star to suitability and to ensure it remains a valuable contributor to the NSW economy,” he said.