Star Entertainment Group: Fate of $2.3bn Gold Coast masterplan development revealed

The future of a $2.3bn multi-tower mega development has been revealed, with the company behind the project revealing what’s in store for its future.

The Star Gold Coast is “doubling down” on its $2bn masterplan rollout - despite the independent casino inquiry - and expect to see two more supertowers by the 2032 Olympics.

The ASX-listed giant’s new interim chairman insists a probe into the operation of Star Entertainment Group’s Queensland casinos - on the Gold Coast and Brisbane - and its suitability to hold casino licences will not impact on long-approved plans to build at least two more supertowers on Broadbeach Island.

Interim chairman Ben Heap told the Bulletin he expected the two remaining towers would be built by the 2032 Olympic Games.

Artist impressions of the Dorsett tower at The Star Gold Coast, the next part of the masterplan

“We are really excited about what we have seen from the investment on the Gold Coast to date and we are now looking forward to 2032 and the Olympics.

“If anything, our commitment to the masterplan is doubling down.

“No decision has been taken but we continue to be pleased with the trading at our Gold Coast property and the success we have had with the first towers.”

Mr Heap’s comments come just months after then-Star CEO Matt Bekier said a decision on the next supertower, known as “tower 3”, would be made mid-year.

Ben Heap. Picture: NCA NewsWire / Joel Carrett

“We have presented, and had approved, a masterplan which showed we could have up to four or five more towers on the island,” Mr Bekier said at the time.

“We are actively reviewing tower 3 and by the time of the 2032 Olympic Games, all of the towers will have been built.

The $2.3bn masterplan, approved by the state government nearly five years ago, includes four towers of 65, 74, 54 and 52 storeys for a total of 1794 apartments and 518 rooms.

The Dorsett and Star Residences tower opened on Boxing Day, 2021, while construction continues on tower 2, known as Epsilon.

The company has been rocked by the exits of many of its top management as a result of an ongoing inquiry into the company’s casino operations. Premier Annastacia Palaszczuk commissioned the inquiry in Queensland after allegations of money laundering and organised crime links emerged from the NSW hearings into Star’s Sydney casino.

The Star Gold Coast Masterplan Development.

Mr Bekier and long-serving chairman John O’Neill have resigned.

Mr Heap said a significant shake-up in the company’s executive leadership and other measures would help restore trust in the wake of recent revelations.

“We have brought in some high-quality leaders such as Robbie Cooke, the incoming CEO and managing director who is an experienced administrator and Scott Wharton who will become the group’s head of transformation,” he said.

“In those two, as well as other enhancements we are making to the board, we are really building a platform and that is how we will rebuild trust and confidence.

“It’s about putting the right people in place for reform.”

The master plan is proceeding.

The company’s rocky 2022 included a net loss of $199 million, according to its financial year results released on Monday.

But the recovery was underway, with domestic revenue on the Gold Coast up 26 per cent and Brisbane domestic revenue up 18 per cent.

The company’s top priority for the year ahead was its commitment to demonstrating suitability to hold casino licences in NSW and Queensland.

Mr Heap praised the Star Gold Coast’s leadership team, including chief operating officer Jess Mellor.

“They delivered 11 per cent year-on-year growth on domestic revenue alone and have bounced back incredibly well from Covid, so continuing this growth is a priority,” he said.

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