FEC finalizes Star transaction, assumes $160M Brisbane project risk

(AsiaGameHub) –   Far East Consortium International (FEC) has finalized the purchase of a 50% interest in the Queen’s Wharf Brisbane integrated resort and pledged a completion guarantee of AUD 248.2 million (approximately $160 million) for the project’s fulfillment.

By acquiring this stake from Star Entertainment Group, FEC now shares equal ownership with Chow Tai Fook Enterprises in the Destination Brisbane Consortium (DBC), granting both entities joint management of one of the premier integrated resort projects in Australia.

Following a revised agreement with the Queensland government, FEC has provided a guarantee for its 50% portion of the developer’s commitments, potentially making the company liable for state compensation should the project fail to meet its requirements or complete the new developments.

This guarantee persists until all contractual duties are fulfilled and accounts for roughly half of the outstanding development expenses. Updated schedules have shifted the anticipated project completion to December 2029.

Pending approval, the deal will be categorized as a discloseable transaction necessitating only a public notice; otherwise, it will be treated as a major transaction requiring more rigorous disclosure and shareholder consent.

FEC anticipates a pre-tax profit of about HKD 1.01 billion (USD 129 million) from this deal, though this figure remains subject to adjustments.

While the move strengthens FEC’s position to benefit from the 2032 Brisbane Olympic Games, it also elevates their financial exposure by assuming direct responsibility for the delivery risks shared by the two owners.