Australian casino operator, The Star Entertainment, divests Sydney center to pay off debts
The Australian gambling company ‘The Star Entertainment’ is divesting The Star Sydney Event Centre and the assets to pay off the debts, with the sale being announced during the Australian Securities Exchange.
It was only earlier this month when the company warned of financial uncertainty as its revenue was down amidst “continued weakness in the operating performance.”
Now, Star Entertainment is selling the Sydney Event Center and its assets which have been purchased by Foundation Theatres which has multiple event spaces for live entertainment.
The transaction is set to cost AU$60M (roughly $37.38m) with the deal to go into escrow before the end of the month.
In the announcement, the CEO of The Star, Steve McCann said: “The Star has worked closely with the team at Foundation Theatres since they acquired the sublease for the Sydney Lyric in 2011.
“We are pleased to partner with them as part of the continued evolution of our broad entertainment offerings at The Star Sydney. We continue to work on a number of other potential non-core asset transactions.”
The Star Entertainment is Australia’s biggest listed casino group and it was founded in 2011.
The Star Entertainment’s Sydney Center will see a shake-up with different ownerThe family-owned Foundation Theatres, which owns and operates two theatres within Sydney, has shared news of the agreement on LinkedIn.
Within the post, the new future of the space has been unveiled: “The Event Centre and additional spaces will be converted into three exciting new Sydney venues to host theatre, live entertainment and contemporary music in Sydney.
“The Event Centre will continue to operate as usual whilst planning continues for its redevelopment into a 1550 seat Broadway style theatre.
“Planning has also commenced for a contemporary music venue for up to 1000 and a flexible venue for theatre, cabaret, comedy and concerts for up to 550.”
The venue could be key in providing more opportunities for the performing arts industry in Sydney.
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