Cash-strapped Star to shed Sydney Event Centre in scramble to stay afloat
Casino giant Star will shed a major entertainment venue as it attempts to raise enough cash to avoid collapse.
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Casino giant Star Entertainment will shed its investment in The Star Event Centre in Sydney as it attempts to raise enough cash to avoid financial collapse.
Star announced to the ASX on Wednesday that it would sell its event centre to Foundation Theatres for $60m.
It comes after Star Entertainment alerted the market on Monday that its revenue had dropped, with just $78m left as of December 31.
The cash pinch is a major concern for the Australia casino giant, which spent more than $100m over the last three months of 2024.
Star earlier sold the leasehold of the heritage-listed Treasury Casino building in Brisbane to Griffith University for $67.5m.
It is also facing about $1.6bn in debt for the new Queen’s Wharf precinct in Brisbane and has come under regulatory scrutiny.
The NSW Independent Casino Commission in October stopped short of cancelling the licence for Star’s Sydney site.
The watchdog alleged it uncovered a litany of regulatory failings stemming from the bombshell Bell II inquiry.
Star’s NSW and Queensland casinos remain under supervision of a government-appointed manager, with $150m set aside over a possible $300m plus fine from Austrac.
Announcing the sale, Star Entertainment chief executive Steve McCann said the company might also seek to sell hotel properties on the Gold Coast and in Sydney.
The Star Event Centre, which has direct access to Star’s hotels and casino, has a main event room seating up to 1400 people, outdoor and corporate spaces.
Foundation Theatres, which operates Sydney’s Capitol Theatre, will reportedly pay the $60m into escrow this week.
According to The Australian, on completion of the deal, the funds will be held in a special account established under terms of the group’s debt facility.
Originally published as Cash-strapped Star to shed Sydney Event Centre in scramble to stay afloat
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