Star Entertainment Group Ltd. says it will invest billions of dollars in the Gold Coast in exchange for exclusivity in the market. In a statement, Star Chairman John O’Neill said, “Obviously, this level of commitment … would require exclusivity arrangements” and require the Queensland state government to abandon plans for a second casino in the city.
Star’s strategic partners in the proposed venture are Hong Kong-based companies Chow Tai Fook Group and Far East Consortium Ltd.
O’Neill described a three-part proposal to build an AU2 billion (US$1.37 billion) phased development that would add five additional towers, a major renovation of the Sheraton Grand Mirage, possible tourism and residential elements, and an AU100 million revamp of the Gold Coast Convention and Exhibition Centre, a facility built on state-owned land but which would be operated by Star Entertainment after renovation.
“It’s not work that might be somewhere down the track. It’s real and we’re ready to commit here and now,” O’Neill said. “The Star’s position has always been we support investment in tourism assets on the Gold Coast, but the Gold Coast market is too small for two casinos,” O’Neill said. “The introduction of another local casino competitor would force us to defend our local market share at the expense of driving incremental interstate and international tourism.”
He said the company is sharing its “unilateral commitment” to investment “in return for certainty around maintaining the Gold Coast as a one casino city—just like Brisbane.”
Star Entertainment Group’s original AU$2 billion Gold Coast Masterplan would see a total of five new towers developed around the site of the Star Gold Coast, two of which are already well underway.
O’Neill told shareholders on Thursday that, should the remaining three proceed, the company had now finalized its plans for Tower 5 which would feature a five-star hotel plus a Sky Park tourism playground with adventure, entertainment and luxury dining attractions, according to Inside Asian Gaming.
