Far East Consortium International Ltd, a Hong Kong-listed firm that has been a partner in the development of Queen’s Wharf Brisbane (pictured), home of The Star Brisbane casino resort, says it is “anticipated” that the sale of a real estate tower at Queen’s Wharf and an operating loan will help provide “sufficient funds for full repayment” of a relevant AUD35-million (US$22.7-million) loan.
In August, Australian casino operator The Star Entertainment Group Ltd said in a filing to the Australian Securities Exchange it had a “binding” agreement with its two joint venture partners – including Far East – in Destination Brisbane Consortium (DBC), developer of Queen’s Wharf Brisbane, in the capital of Queensland, Austalia.
Under that agreement, The Star pledged to sell to its partners the casino firm’s 50-percent interest in the Queen’s Wharf Brisbane development for AUD53 million.
Far East stated in its Monday update: “It is anticipated that the sale proceeds of Tower 2 (Andaz) and the hotel operating loan will not be less than AUD35 million providing sufficient funds for full repayment of the loan.”
The filing from Far East added: “At the time when the heads of agreement was entered into between The Star and the joint venture partners, The Star has been facing depressed trading conditions and advised the joint venture partners that it required an immediate injection of funds.
“Accordingly, it was agreed under the heads of agreement on a high-level basis that the joint venture partners would provide funding in the amount of AUD53 million to The Star in order to provide The Star sufficient liquidity, and in return the joint venture partners would, amongst others, receive The Star’s Destination Gold Coast Consortium Hotel Pty Ltd apartment net sale proceeds as a form of security for the funding.”
