Star Entertainment Shares Plunge After Queens Wharf Deal Collapses

Highlights:

• Star Entertainment Group (ASX: SGR) shares dropped 13.6% to a 52-week low of 9.1¢ at the time of writing.
• The company’s planned sale of the Queen’s Wharf Brisbane development to Hong Kong-based partners has collapsed.
• Star is now responsible for repaying $41 million, funding future development, and managing almost $1 billion in related debt.

Development setback triggers massive sell-off

The Star Entertainment Group Ltd (ASX: SGR) saw its shares plunge 13.6% to hit a 52-week low of 9.1¢ at the time of writing, after a planned sale of its Queen’s Wharf precinct in Brisbane collapsed. The deal, which would have offloaded a major development project to its Hong Kong-based joint venture partners, has now fallen through, leaving the company with a costly burden.

Repayments and redevelopment costs pile up

The fallout means Star must now repay $41 million to its joint venture partners and resume financial responsibility for the development itself. This includes millions of dollars in expected construction and operational costs—an unwelcome hit to a company already grappling with financial and regulatory challenges. In addition, the casino operator remains liable for nearly $1 billion in debt linked to the Brisbane precinct, raising further concerns about its long-term solvency.

Investor confidence shaken

The collapse of the Queen’s Wharf sale adds to ongoing woes for Star Entertainment, which has been navigating increased scrutiny from regulators and declining earnings in recent quarters. The unexpected reversal has shaken investor confidence, with analysts now questioning the company’s ability to manage its financial obligations without a successful asset sale.

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