In a significant development for Brisbane’s real estate and education sectors, The Star Entertainment Group has finalized the sale of its leasehold interest in the historic Treasury Building. The deal, concluded with Griffith University, is valued at approximately AU$67.5 million, with an anticipated net profit of around AU$60.7 million. This transaction marks a pivotal moment for The Star, coming at a time when the company faces considerable financial challenges.
Background on the Treasury Building
The Treasury Building, an iconic structure located in the heart of Brisbane’s Central Business District (CBD), has long been a landmark in the city. Historically a casino, the building has been an integral part of Brisbane’s heritage. In recent years, it has served various functions, including housing significant entertainment and hospitality facilities.
Details of the Sale
The Star Entertainment Group has reached an agreement with Griffith University to sell its leasehold interest in the Treasury Building. The sale is set to generate a net profit of approximately AU$60.7 million, reflecting a valuation of AU$67.5 million. This transaction is particularly noteworthy given the backdrop of The Star’s financial difficulties, which have been well-documented in recent weeks.
Financial Strain on The Star Entertainment Group
The timing of this sale is crucial, as The Star is currently grappling with severe financial challenges. Earlier this week, the company sought AU$300 million in short-term funding from the Queensland Government to support its AU$3.6 billion Queen’s Wharf precinct development in Brisbane. This request underscores the financial pressure the company is under, which is further compounded by its recent suspension from trading on the Australian Securities Exchange (ASX). The suspension resulted from The Star’s failure to submit required monetary results by the designated deadline.
In addition to seeking financial aid from the Queensland Government, The Star also approached the Government of New South Wales for assistance, which was unfortunately declined. These financial strains have prompted speculation that The Star may be considering further asset disposals to alleviate its debt burden.
Impact on the Treasury Building
The Treasury Building’s closure to the public in late August was initially announced as part of the preparations for the opening of the Queen’s Wharf Brisbane precinct. This move led to speculation that the sale to Griffith University might have been part of a longer-term strategic plan rather than a reactionary measure to immediate financial pressures.
Future of the Treasury Building
With the sale finalized, the Treasury Building will transition to its new role as Griffith University’s first CBD campus. The university plans to establish a state-of-the-art hub within the building, focusing on Business, Information Technology, and Law. Scheduled to open in 2027, this new campus will represent a significant addition to Griffith University’s infrastructure, enhancing its presence and capabilities in Brisbane’s CBD.
Statements from Stakeholders
Daniel Finch, CEO of The Star Brisbane, expressed pride in the company’s stewardship of the Treasury Building. “It has been a privilege for our company and team members to be the caretaker of the much-loved heritage building for almost thirty years,” Finch stated. He further emphasized the company’s satisfaction in transferring the building to Griffith University, highlighting their respect for its historical significance.
Griffith University’s acquisition of the Treasury Building aligns with its broader strategic goals of expanding its educational footprint and providing advanced facilities for its students. The establishment of a new campus in such a prominent location is expected to enhance the university’s offerings and contribute positively to Brisbane’s educational landscape.
The sale of the Treasury Building represents a significant turning point for The Star Entertainment Group and Griffith University. While The Star’s financial difficulties have driven the need to offload this asset, the transaction also sets the stage for a new chapter in the building’s storied history. For Griffith University, the acquisition provides an opportunity to create a modern educational hub in a historically rich environment. As the campus prepares for its 2027 opening, the future of the Treasury Building looks poised for a new era of academic excellence.