The Star has announced that it has entered into a settlement deed with the primary contractor of its Queen’s Wharf Brisbane property, Multiplex Constructions Qld.
Back in August, the joint venture company set up for the project – Destination Brisbane Consortium (owned 50 per cent by The Star and 25 per cent each by Chow Tai Fook and Far East Consortium) – was served with a process in Queensland courts by Multiplex over ‘purported claims for additional costs, extensions of time and damages’.
The settlement is expected to cost The Star between AU$30m (US$20.5m) and AU$85m (US$58m), dependent upon the project delivery dates achieved by Multiplex.
The group notes that the payments will be settled “through a combination of existing resources and additional equity contributions from the joint venture participants.”
The Star’s share of costs to complete Queen’s Wharf (including the settlement arrangements) is expected to be “approximately AU$110m” (US$75.1m).
The settlement also calls for the ending of claims arising prior to the agreement, as well as delay claims prior to its effective date.
Source: Asia Gaming Brief