Australia's Star Entertainment Group are full steam ahead with Brisbane's Queens Wharf development after executed financing arrangements last week for a $1.6 billion debt package.
Star, which owns 50% of the project, teamed up with David Chiu’s Far East Consortium and New World Development chairman Henry Cheng’s Chow Tai Fook Enterprises to develop the 27.5 hectare (68 acre) riverfront project.
While not disclosing details of the financing, the terms for the funding package were agreed with the financiers prior to the COVID 19 pandemic and therefore reflect terms available in the market at that time. Importantly, the funding is for a period of 5.5 years, which is expected to provide around three years of operating history before refinancing is required. Conditions precedent for the funding are expected to be completed in June 2020, including relevant final approvals from the Queensland Government.
The project is set to be the biggest private sector development ever in Queensland, with a casino, five hotels, 50 F&B outlets, 2,000 apartments, and 40,000 square metres (430,556 square feet) of retail space. Construction will bring much needed employment to the Brisbane CBD and will add to the significant infrastructure spending the State and City Council have committed to the City.
Construction of the basement levels of Queen’s Wharf Brisbane commenced in June last year, with completion of the first stages expected by the end of 2022. The first draw-down on the funding is expected in June 2020, with more substantial draw-downs to fund construction to commence in early CY2021.
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