The State Government has given the approval of a mega masterplan for The Star Gold Coast for which The Star Entertainment Group (ASX: SGR) and its partners will invest more than $2 billion in additional tourism investment across South East Queensland (SEQ).
Further, the company has announced an even more ambitious goal that they have the potential to make The Star Gold Coast Australia's largest resort would attract more than $2 billion to improve its existing mega-resort that currently sits on Broadbeach Island.
Previously, the company had broken ground on its latest development, the Dorsett Hotel, which was a $400 million addition to the company's growing South East Queensland portfolio. Along with Chow Tai Fook, a Hong Kong-based conglomerate, and developer Far East Consortium, The Star has currently completed or planned investments in South East Queensland worth more than $4.5 billion. After the completion of this mega resort, The Start Entertainment Group will have invested close to $9 billion in South East Queensland.
Further, with this megaplan in place, The Star Gold Coast would offer more tourism accommodation than any other resort in Australia. This 3000 hotel rooms and apartments are also expected to exceed the world-renowned Marina Bay Sands in Singapore offers and be on a scale that compares with the largest integrated resorts in Las Vegas. Moreover, along with four additional towers including more hotels, the $2 billion-plus expanded masterplan proposed by The Star and its Hong Kong-based partners, Chow Tai Fook and the Far East Consortium, will comprise of significant new restaurant and bar precincts, increased entertainment and retail options and Lush new resort facilities. Meanwhile, the first phase of the overall masterplan’s five new towers was approved in December 2016 and is currently under construction. The Dorsett hotel and apartments tower are scheduled to be completed in 2022. Overall the tourism investments comprise of the Queen’s Wharf Brisbane development, in which an expanded design has led to the recent announcement of an additional $600 million injected into the project. The investment has also gone for the March 2018 completion of The Star Gold Coast redevelopment and the pre-Commonwealth Games opening of the luxury all-suite The Darling hotel. The investment of the tourism includes the 2017 purchase of The Sheraton Grand Mirage Resort at The Spit on the Gold Coast and the new Dorsett Hotel and The Star Residences tower now under construction on the Gold Coast. Additionally, Broadbeach is considered as the perfect location for the continued development of tourism assets which is expected to deliver to the Gold Coast an integrated resort capable of competing with the best on a domestic, regional and global basis.
However, the ability to proceed with the masterplan for the Star Entertainment Group and its partners will ultimately depend on market and competitor conditions at the appropriate time, as the project requires a significant amount of an investment.
In the last six months, the share price of SGR decreased by 7.84 percent as on 1 November 2018. SGR’s shares traded at $4.790 with a market capitalization of circa $4.42 billion as on 2 November 2018 (AEST 4:00 PM).
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