Troubled Star Entertainment agrees A$60m deal to sell Star Sydney Events Centre

Star Entertainment Group has agreed to sell the Star Sydney Event Centre as part of an A$60m deal.

Troubled Star Entertainment agrees A$60m deal to sell Star Sydney Events Centre

The troubled Australian gaming group has reached the exclusivity arrangement with leading theatre operator Foundation Theatres Pty Ltd as it seeks to raise much-needed cash. Star Sydney Event Centre is a multifunctional venue that hosts exhibitions, galas and conferences. Foundation Theatres owns and operates Sydney Lyric and Capitol Theatre.

The contract, which also includes two additional spaces within The Star Sydney complex, is subject to settlement adjustments and regulatory consents. The move comes as the embattled casino operator raised concerns about liquidity and cash earlier this month, having only A$79m in available cash at the end of December 2024. Star Entertainment has been hit by a number of regulatory issues in recent years that have threatened the future of its venues.

Foundation Theatres said the Event Centre will continue to operate as usual whilst planning continues for its redevelopment into a 1,550-seat Broadway-style theatre. Planning has also commenced for a contemporary music venue for up to 1,000 and a flexible venue for theatre, cabaret, comedy and concerts for up to 550.

Steve McCann, chief executive of The Star, said: “The Star has worked closely with the team at Foundation Theatres since they acquired the sublease for the Sydney Lyric in 2011. We are pleased to partner with them as part of the continued evolution of our broad entertainment offerings at The Star Sydney.”

Foundation Theatres will pay a A$60m exclusivity fee in respect of the transaction into escrow on or before 31 January 2025 which will be released to The Star as consideration for the disposal subject to finalisation of the long-form transaction documents and satisfaction of conditions.

Entry into long-form documents for the transaction and completion are currently targeted to occur by the end of February.

Foundation Theatres said: “We can’t wait to see what opportunities these venues bring to the performing arts industry in Sydney.”

Earlier this month, Star Entertainment announced that Q2 FY25 revenue was down 15% year-on-year to A$299m. Q2 EBITDA loss of $8m was an improvement on the A$18m loss in the prior period. Revenue at Star Sydney declined by 6% compared to the previous quarter, impacted by the implementation of mandatory carded play and cash limits.

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