An international consortium led by The Star Entertainment Group has completed the acquisition of the Sheraton Grand Mirage Resort at the Gold Coast.
The international joint venture includes Hong Kong-based Chow Tai Fook Enterprises and Far East Consortium.
It is understood that Star will take a half interest in the resort and the two Hong Kong parties will hold 25 percent each. The Star’s contribution is a $40 million equity investment in the beachfront five-star resort on The Spit, which reportedly sold for $140 million.
The purchase strengthens The Star’s presence on the Gold Coast as the ASF Consortium attempts to garner support for its $3 billion integrated resort and casino plans for a block adjacent to Seaworld, just a few hundred metres from the Sheraton Mirage.
The Star is also investing up to $850 million in Jupiters Casino in Broadbeach, where it has plans for five towers in addition to the casino. It has also begun work on its $3 billion Queen’s Wharf Development in Brisbane. Both of those developments are being done in partnership with Chow Tai Fook Enterprises and the Far East Consortium.
“Sheraton Grand Mirage is a distinctive tourism destination, it is the Gold Coast’s only 5-star beachfront resort,” said Matt Bekier, managing director and chief executive officer of The Star Entertainment Group.
“It is a highly valuable asset as it is and we will look to further enhance its appeal over time, always respecting the unique natural environment of The Spit and preserving the character of this special area.”
Marriott International will continue to operate the resort under its long-term management agreement.
The Star will look to enhance the resort’s food and beverage offering, but has no plans for gaming facilities or high rise development on the site.
Development on The Spit is a contentious issue as it a three-storey height limit, but both ASF Consortium and Sunland Group have proposed high rises in the area.