ECHO Entertainment Group (ASX:EGP) has entered an agreement to sell Jupiters Townsville casino to Colonial Leisure Group for $70 million.
Echo managing director and CEO John Redmond (pictured) says the company saw limited expansion opportunities for the Townsville property.
“We remain committed to and excited about investment in South East Queensland and believe the company’s capital will be better deployed as we advance our plans for development of both Jupiters Gold Coast and Treasury Brisbane into large-scale integrated resorts,” he says.
CLG is a wholly owned private Australian company, it operates 15 hotels in Victoria and WA, plus a brewery in Margaret River.
In North Queensland it owns Orpheus Island and the Daintree Eco Lodge, the Daintree General Store and Hotel and Nautilus Aviation.
CLG says it aims to develop Jupiters Townsville Hotel and Casino “improving the operational and financial performance of the property”.
The transaction is subject to the required regulatory approvals, but is not subject to finance or shareholder approval.
EGP is trading up .42 per cent at $2.420 this afternoon.
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