Cash-strapped The Star confirms sale of Treasury Brisbane Casino building to Griffith University

The agreed sale forms part of The Star's transition to the $3.6 billion Queens Wharf development in which it has a 50 per cent stake, and where it will be opening a new casino if the necessary regulatory approvals are received. 

The news comes almost 15 months after property investor Charter Hall (ASX: CHC) pulled the pin on a $248 million transaction and leaseback deal for the Brisbane Treasury complex, which also includes another building on the other side of Queens Gardens that forms the Treasury Hotel, and the Treasury carpark.

Remaining assets in the Treasury complex are still for sale, as well as the Festival Car Park in Brisbane.

The Star is expecting net proceeds of $60.7 million from the casino building sale, which is still subject to relevant government consents and a new lease in suitable form being granted and registered for Griffith University.

A new lease and settlement are targeted for on or around 27 September 2024, with Griffith University planning to open it as its new Brisbane City campus in 2027.

The Star’s announcement this evening follows ongoing speculation about the group’s financial position in the wake of challenging market conditions and revelations that it is considering safe harbour provisions of corporation law as it continues to finalise its overdue earnings report for FY24.

The Star is rumoured to be planning to raise capital to shore up its cash position, along with other initiatives including a potential tax relief package from the Queensland Government, while some sources have suggested a break-up of the company may be on the cards.

The speculation ramped up last week when the NSW Independent Casino Commission handed down the report from the second Bell inquiry into the group’s suitability to hold a casino licence. The commission is still weighing up the next steps for The Star following the release of the findings.

Meanwhile, the lease announcement for the Treasury building would mark the first Brisbane CBD footprint for Griffith University, which also has a central presence with its South Bank campus, in addition to the original site in Nathan and campuses in Logan, Mount Gravatt and the Gold Coast.

As far as Southeast Queensland's leading universities are considered, the Brisbane CBD has historically been mainly the domain of the Queensland University of Technology (QUT), while the University of Queensland's (UQ) has its main campus in the inner western riverside suburb of St Lucia.

But having a presence in the heart of the city has become a matter of prestige for these universities, with UQ striking a deal to buy the historic Chambers building on Queen Street in 2019 for $47.4 million. The building has become UQ Brisbane, acting as a co-working and collaborative space for UQ alumni and community.

Both the Chambers building and the Treasury casino building were built from sandstone over the same period between the 1880s and 1930, constructed in a classical style with prominent columns.

The Treasury building will serve as a hub for Griffith University’s Business, Information Technology, and Law disciplines, as well as a centre for postgraduate and executive education. It is expected to become home to 7,000 students and 200 staff by 2035.

Griffith University Vice Chancellor and President Professor Carolyn Evans says the CBD campus will serve as a ‘front door’ for industry and community engagement, enabling partnerships with commerce, industry, and government. 

“The Brisbane CBD campus will deliver an entirely new experience for students, staff, and partners alike,” Professor Evans says. 

“This flagship location will not only complement our existing South Bank campus but will enhance Griffith’s profile both locally and globally, making it an iconic hub of learning and engagement.” 

The Star Brisbane chief executive officer Daniel Finch says the company is "delighted to hand the baton" to Griffith University, "knowing the Treasury Building is in the safe hands of another proud Queenslander which respects its history as much as we have".

"It has been a privilege for our company and team members to be the caretaker of the much-loved heritage building for almost thirty years," Finch says.

"As a neighbour just up the street at The Star Brisbane at Queen’s Wharf, it will be exciting to watch the story of the Treasury Building evolve, continuing to provide unique experiences and memories for future generations."

Minister for State Development and Infrastructure Grace Grace describes the building as one of Queensland’s great landmarks, and is "thrilled" that it will be transformed into a place of learning.

"Former Premier Sir Samuel Griffith played a key role commissioning the Treasury Building so it’s fitting that this historic site will house a renowned university that bears his name," Minister Grace says.

"With its rich history, this building has always fascinated visitors and will now continue to be enjoyed by the public well into the future.”

Griffith University is committed to preserving the heritage nature of the building while equipping it for the future needs of education.  

According to the university, international students are also expected to benefit from the prime location providing them with the opportunity to live, work, and study in the heart of the city.

“The CBD campus will solidify Griffith University’s presence on the global stage, attracting talent from around the world to the 2032 Olympic Games city,” Professor Evans says. 

“We are excited to embark on this transformative journey, creating a world-class educational hub shaping the future of learning and community engagement in Brisbane and beyond.”