Sydney casino records profit in lockdown but announces plan to sell assets including VIP private jet

Negotiations are underway for The Star to sell 49 per cent of its Sydney casino site lease to property investors and then rent it back.

The Star casino is gambling on ways to raise funds, with ­negotiations under way for it to sell 49 per cent of its Sydney site lease to property investors and then rent it back.

It is one of the options ­announced on Thursday that also included the casino selling its VIP private jet.

The Star casino in Sydney’s Pyrmont has made a record profit but is still looking a ways to raise cash. Picture: Brendon Thorne/Bloomberg

Star Entertainment chief executive Matt Bekier said the fund-raising process to sell parts of the Pyrmont site’s lease was already under way and there was “good interest” from investors. But he stressed the deal would not affect operations at the casino site or alter plans to build two new hotel towers, which are expected to be put on public exhibition in October.

Mr Bekier said the towers would be in addition to two new theatres that would help position Sydney as “Australia’s entertainment capital”.

The Star has turned around a Covid-induced $95 million loss in the past financial year to post a $57.9 million profit — largely thanks to operations in Queensland that have remained open.

Mr Bekier confirmed the group will sell its last remaining VIP Global Express jet, which is worth $40 million, ­because of a ban on Chinese “whales” flying in to gamble.

“We won’t be using it ­because of the ban on junket business and the realignment towards mainstream market activities,” Mr Bekier said.

The Star Entertainment Group is selling a VIP jet.

The Star will be keeping its $15 million luxury cruiser to entertain guests on Sydney Harbour. Mr Bekier is keen to reopen operations at the Sydney flagship site, which has been closed apart from takeaway meal operations since June 25.

But he will not follow the lead of Qantas and order all staff to be vaccinated.

“Our advice is that we cannot mandate that but we are encouraging staff in every possible way to be vaccinated,” he said.

Mr Belier hoped that once the NSW Government’s vaccination targets had been reached, there would be opportunity to allow venues to ­explore the option of having vaccinated staff serve vaccin­ated customers.

Inside The Star’s Bombardier Global Express XRS corporate jet.

At present, 3500 of the group’s 4500 Sydney staff have been stood down on reduced pay and government emer­gency funds that mean they are averaging about 80 per cent of their normal income.

The board and corporate team, including Mr Bekier, have taken a 20 per cent pay cut in solidarity.

The Star has withdrawn its offer to merge with Crown but Mr Bekier said it remains open to a potential deal in the future.

He said the offer was withdrawn because of issues raised in the Victorian and West Australian royal commissions into Crown.

Star Chairman John O’Neill said “the fundamental earnings prospects for The Star ... remain attractive”.