• Star to exit 50% stake in Destination Brisbane Consortium
• Star to acquire full ownership of Dorsett and Andaz hotels at Gold Coast
• Star to receive $53 million cash payment and earn-out of up to $225 million

The Star Entertainment Group Limited (ASX: SGR) has entered into a binding heads of agreement with its joint venture partners, Chow Tai Fook Enterprises Limited and Far East Consortium International Limited, to exit its 50% equity interest in the Destination Brisbane Consortium (DBC) and terminate the DBC Casino Management Agreement after a transitional period. As part of the transaction, The Star will acquire the joint venture partners' interests in the Dorsett (Tower 1 Hotel) and Andaz (Tower 2 Hotel) at The Star Gold Coast, consolidating its position on the Gold Coast. The transaction will provide The Star with an upfront cash payment of $53 million, with $35 million received today, and the potential for an earn-out payment of up to $225 million based on the future performance of the DBC assets. The Star will no longer be required to make any further equity contributions to DBC after 31 March 2025. The transaction is subject to the entry into long-form documentation by 30 April 2025 and satisfaction of all required conditions precedent, including regulatory approvals.

The Star believes there are several benefits by consolidating its position on the Gold Coast, including the full ownership of two hotels enhancing its customer offering and providing further depth to its accommodation mix. The Star will retain its rights to future development on the 6.7 hectare site, with the joint venture partners retaining their existing development rights for the next tower only, subject to The Star's option to buy-out those rights.