Australia’s Star Entertainment said it had received a notice from Hong Kong’s Far East Consortium International and Chow Tai Fook Enterprises to terminate the deal to sell its 50 per cent stake in its Queen’s Wharf project in Brisbane.
The agreement was entered into by the parties with the embattled casino operator on March 7, with the termination set to take effect five business days from June 30, unless withdrawn earlier.
The agreement in March outlined the basis for the casino operator to exit its equity interest in Destination Brisbane Consortium (DBC), but the parties did not reach an agreement on the outstanding commercial issues of the deal as of this morning, Star said in a statement on Monday.
Far East Consortium, in a separate statement, said Star is required to repay a total of A$10 million ($6.53 million) by no later than 30 days of the date of termination. If the said amount is not repaid within the period, Star will be required to instead transfer its 33.3 per cent interest in Tower 1 (Dorsett) to the Hong Kong parties, the property developer added.
Star Entertainment did not immediately respond to a Reuters email seeking confirmation of the repayment details.
($1 = 1.5305 Australian dollars)
