Star Ent, partners sell Sheraton Gold Coast for US$128mln

Jun 27, 2023 Newsdesk Latest News, Top of the deck, World  

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Casino operator The Star Entertainment Group Ltd said in a Monday filing that an associated unit has reached an agreement to sell the Sheraton Grand Mirage Resort (pictured) on the Gold Coast, in the Australian state of Queensland, for AUD192 million (US$128.2 million).

The deal is “subject to the buyer obtaining approval to the transfer of the liquor licence from the Queensland Office of Liquor and Gaming Regulation,” stated Star Entertainment.

The seller is Australian Wattle Development Pty Ltd, 50 percent owned by Star Entertainment. The other partners are Hong Kong-based companies Chow Tai Fook Enterprises Ltd, and Far East Consortium International Ltd.

The suitors were identified as entities owned by the Karedis and Laundy families, which via existing business interests already own a number of well-known beachfront hotels in Australia.

Australian Wattle Development paid AUD140 million for the Gold Coast property in January 2017. The selling price is a lower figure than the AUD200-million-plus the vendors were originally asking.

The deal represents a multiple of 21 times estimated calendar-year 2023 earnings before interest, taxation, depreciation and amortisation; and a price of about AUD650,000 per room key, Star Entertainment said in its Monday statement.

Star Entertainment said last week that the sale of its Treasury Casino and Hotel Brisbane, also in Queensland, had been terminated by Charter Hall Group, an Australia-listed property trust fund.

The casino firm is also involved in the development of the Queen’s Wharf Brisbane scheme. The latter casino resort is being developed by privately-owned Destination Brisbane Consortium, a joint venture between Star Entertainment, Chow Tai Fook, and Far East Consortium.

The Queen’s Wharf project has faced a number of delays in recent months, with the promoters now expecting it will open in April 2024.

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