Star Entertainment Puts Sheraton Grand Mirage Up For Sale
Posted on March 16, 2023 | 8:19 am
Star Entertainment, the embattled Australian owner and operator of land-based casinos, has announced that it is willing to sell its share in the Sheraton Grand Mirage resort on the Gold Coast.
The property was listed for 200 million dollars according to reports. Sheraton Grand Mirage is a beachfront property in which Star Entertainment controls 50 percent, while Far East Consortium and Chow Tai Fook, both companies listed on the Hong Kong Stock Exchange, each control 25 percent.
Star Entertainment along with Far East Consortium and Chow Tai Fook acquired the Sheraton Grand Mirage in 2017 for around 140 million dollars, with the Australian company contributing 40 million dollars of equity.
The two Hong-Kong based companies are also partners with Star Entertainment in Queen’s Wharf, a casino and resort project in Brisbane worth 3.6 billion dollars. Now, as Star Entertainment is trying to raise over 500 million dollars in equity, Chow Tai Fook and Far East Consortium saw their shareholdings in the company diminished.
Now the two Hong Kong-based companies have a combined stake of just 6.68 percent compared to the 9.99 percent they had before. The two entities promised to inject around 80 million Australian dollars into the company after having paid 245 million Australian dollars each to acquire their stakes in 2018.
The two Asian companies own around 25 percent of the Queen’s Wharf project, which is expected to open in December 2023. Star Entertainment owns 50 percent of the development, an identical setup to the Sheraton Grand Mirage.
Speaking about the equity-raising activity, Robbie Cooke, the Chief Executive Officer of Star Entertainment, said that he was confident that the company will manage to have a strong balance sheet and “deliver on its key strategic priorities.”