Charter Hall to buy Star Entertainment Group’s Casino and Treasury Hotel buildings

Charter Hall will buy Star Entertainment Group’s Casino and Treasury Hotel buildings and the Queen’s Gardens Car Park on George St in the Brisbane CBD for $248 million in a partial leaseback deal. 

The sale of the casino building will be settled in the first half of 2023.

Managing director of Charter Hall David Harrison said Charter Hall will look at “a whole range of alternatives” for the historic former Treasury Building. 

“We own a lot of heritage buildings that have been restored and repurposed, so we are very comfortable with it,” he said. 

“At this stage we will be looking at converting it into a mixed-use office and retail building.” 

The leaseback will be an initial term of 30 years with two 15-year options, with the three assets to be placed into Charter Hall’s unlisted $9 billion wholesale Charter Hall Prime Office Fund.

According to Harrison, the triple purchase is “strategic” as they also own Brisbane Square which gives them four major assets in a line. 

“We obviously have vested interests in that part of Brisbane because we will own quite a few assets up there,” Harrison said. 

“The whole precinct is going to get upgraded, which is why we’ve been pretty bullish on that part of Brisbane. We think we can do some pretty creative things there.”

Star Entertainment said the transaction was subject to Government approval.

 Irit Jackson, 28^th October 2021