In amarket update on Thursday,Star recommitted to a staged opening from August after earlier delays and with the consortium having to push back the opening of hotels and repurposed heritage buildings.
But everything comes at a cost:settling a dispute with builder Multiplex is now expected to cost the consortium between $60 million and $170 million,while another $220 million is needed to bring the project to completion.
Based on the most recent cost estimate of $3.6 billion – from an initial $2 billion – that will likely see Queen’s Wharf become a $4 billion project. Consortium partners are looking to refinance loans and find enough money to finish tower two (of the five towers approved for construction).
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Yet damaging inquiries into the Star business and ongoing regulatory requirements have already started to eat away at the revenue the company makes from gamblers in Queensland.
Star reported a 10 per cent drop in revenue for Treasury casino in Brisbane – which still raked in $177.6 million in six months – due to steps taken to deal with problem gamblers,such as exclusions andtime restrictions.
There was also “increased competition from larger pubs and clubs that underwent large-scale renovation projects,introduced loyalty programs and greater promotional activity”.