Star Entertainment Group has completed the sale of its Sheraton Grand Mirage Resort Gold Coast property. Announced earlier this year, the sale saw the Australian casino and hospitality giant sell the property for AUD 192 million (roughly $128 million at the time of the announcement).
The sale of the property came amid regulatory headwinds that saw the company lose public trust and experience deterioration in operating conditions.
Grand Mirage Resort Gold Coast was purchased by the Karedis and Laundy families. Best known for their activity in Australia’s liquor and hospitality sectors, the families will thus be able to expand their portfolio with another major property.
The sale was officially closed on November 3, providing Star Entertainment with almost AUD $60 (approximately $39 million in USD) in net proceeds. For reference, Australian Wattle Development originally purchased the property for AUD 140 million in 2017.
The Group Is Yet to Recover from the Bell Review
The Star’s post-review hurdles are not over yet. In 2021, the NSW Independent Casino Commission appointed Adam Bell SC to review the company’s business in New South Wales. After months of investigation, the Bell review uncovered multiple violations.
The company had to pay hundreds of millions in fines, almost lost its license to conduct business in the state and was forced to implement remediation measures and do better. The fines and the public trust Star lost caused its business to decline.
The silver lining is that the company’s remediation process seems to be going well. At the end of August, the company reported that it has so far implemented 22 of the 30 Bell review recommendations. The struggling casino and hospitality giant reaffirmed its intentions to do follow the recommendations outlined in the review and fix its shortcomings.
In addition, the company was recently able to strike a tax relief deal in NSW. The concession on casino duty rates with the NSW government is expected to help Star get its finances under control.
In other news, Star Entertainment was recently criticized by professional poker players who accused the company of banning players without providing any justification. Considering WPT’s exclusive partnership with Star Entertainment, this caused trouble for some elite poker players.