The Star Entertainment Group to Sell Treasury Brisbane Casino Building for $67.5 Million
THE STAR ENTERTAINMENT GROUP LIMITED (SGR) Share Update September 2024 Friday 6th
The Star Entertainment Group Announces Sale of Treasury Brisbane Casino Building
The Star Entertainment Group Limited (ASX: SGR) has announced an agreement to sell the leasehold interest in the Treasury Brisbane Casino building to Griffith University for $67.5 million plus GST.
Instant Summary:
- The Star Entertainment Group to sell Treasury Brisbane Casino building for $67.5 million.
- Net proceeds expected to be $60.7 million after settlement adjustments.
- Sale subject to government consents and new lease registration.
- Settlement targeted for 27 September 2024.
Sale Agreement Details
The Star Entertainment Group Limited (ASX: SGR) has reached an agreement to sell the leasehold interest in the Treasury Brisbane Casino building to Griffith University for $67.5 million plus GST. After settlement adjustments, the net proceeds are expected to be $60.7 million.
The sale is contingent upon several conditions, including obtaining relevant government consents and the granting and registration of a new lease in a suitable form. The new lease and settlement are currently targeted to occur on or around 27 September 2024.
Background Information
The Treasury Brisbane Casino building was closed on 25 August 2024 following the relocation of casino operations to the newly opened Queen's Wharf precinct on 29 August 2024. The sale of the building is part of The Star's strategic initiatives to optimize its asset portfolio and focus on the new Queen's Wharf development.
Financial Impact
The sale is expected to generate net proceeds of $60.7 million, which will be used to strengthen The Star's balance sheet and support its ongoing projects. The transaction is anticipated to have a positive impact on the company's financial position by providing additional liquidity and reducing debt.
This sale is likely to have a positive impact on The Star Entertainment Group's stock price as it provides a significant cash inflow and reduces the company's debt. The additional liquidity will enable The Star to invest in its new projects, including the Queen's Wharf development, which is expected to drive future growth.
Investor Reaction:
Analysts are likely to view this transaction favorably due to the positive impact on The Star's financial position and the strategic focus on the Queen's Wharf development. The sale aligns with the company's long-term strategy of optimizing its asset portfolio and enhancing shareholder value.
Conclusion:
Investors should consider the potential benefits of this transaction, including the improved financial position and strategic focus on new developments. The successful completion of the sale and the ongoing progress of the Queen's Wharf project will be key factors to monitor in the coming months.