A University Is Buying Star Entertainment's Treasury Casino
Amid threats of having its casino license canceled, The Star Entertainment Group has taken a significant step in its restructuring efforts by announcing an agreement to sell its interest in the Treasury Brisbane Casino to Griffith University for AUD67.5 million (US$59.1 million). The sale is part of The Star's broader transition toward the $2.4-billion Queens Wharf development, where the group holds a 50% stake and is planning to open a new casino, pending regulatory approvals.
Star Entertainment's Treasury Casino in Brisbane, Australia. (Source: Brisbane Holiday Village)
LISTEN TO THIS ARTICLE:The transaction comes over a year after a previous agreement with property investor Charter Hall fell through. The original deal, valued at $248 million, included a sale and leaseback arrangement for the Brisbane Treasury complex, which comprises the Treasury Casino, its hotel and a parking garage. Despite the current sale, several assets under the Treasury umbrella, including another parking garage in Brisbane, remain on the market.
Related: Treasury Brisbane Casino Announces Official Closure DateThe Star expects net proceeds of AUD60.7 million (US$40.4 million) from the sale. However, government approvals are required, and Griffith University must secure and register a new lease agreement for the property. The settlement and the establishment of the lease are expected to be finalized by September 27, with Griffith University looking to inaugurate the new campus sometime in 2027.
The sale comes amid a backdrop of financial difficulties for The Star. The company has been under pressure from challenging market conditions and delays in finalizing its FY24 earnings report. Recent reports suggest the company may be considering safe harbor provisions. Additionally, there is speculation that The Star may seek to raise capital, potentially by way of tax breaks from the government.
This speculation intensified following the release of the second Bell inquiry report by the NSW Independent Casino Commission, which questioned The Star's suitability to retain its casino license. The commission is currently reviewing the report and considering its next steps, adding further uncertainty to the group's future.
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From Iconic Casino to Iconic Campus
The announcement of the sale to Griffith University marks a new chapter for the Treasury Brisbane Casino building, one of Brisbane's most iconic structures. The university plans to use the building as a hub for its Business, Information Technology, and Law faculties, as well as a center for postgraduate and executive education. By 2035, Griffith expects the campus to host 7,000 students and 200 staff, creating a new educational landmark in Brisbane's CBD.
This acquisition also marks Griffith University's first significant presence in the Brisbane CBD. It has historically been dominated by the Queensland University of Technology (QUT), while the University of Queensland (UQ) has its main campus in St Lucia, with a smaller presence in the CBD after purchasing the historic Chambers building in 2019.
Professor Carolyn Evans, Vice Chancellor and President of Griffith University, expressed her enthusiasm for the new campus, describing it as a "front door" for engaging with industry and the community. She emphasized that the Brisbane CBD campus would enhance Griffith's profile both locally and globally. "The Brisbane CBD campus will deliver an entirely new experience for students, staff, and partners alike," Professor Evans said.
Queensland's Minister for State Development and Infrastructure, Grace Grace, welcomed the sale, describing the Treasury building as one of Queensland's great landmarks. She highlighted the importance of its transformation into a center for learning and its potential to benefit both domestic and international students seeking opportunities in the heart of Brisbane.
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