The Star, an Australian-based gambling and entertainment company, has revealed that it has officially signed a settlement deed with Multiplex Constructions Qld., the builder of its Queen’s Wharf Brisbane project.
Settlement deed:
During August, the Destination Brisbane Consortium, the group’s joint venture firm established for the project, was served in the Supreme Court by Multiplex because of “purported claims for additional costs, extensions of time and damages.“
As for the aforementioned settlement deed, it is projected to cost the said gambling and entertainment firm between AU30 million, which is approximately $20.5 million, and AU$85 million, which is approximately $58 million, depending on project delivery dates reached by the aforementioned project’s builder. In addition, The Star points out that the payments will be sorted out “through a combination of existing resources and additional equity contributions from the joint venture participants.”
Relatedly, the company’s share of the Queen’s Wharf completion expenses, involving the aforementioned settlement arrangements, is projected to be roughly AU$110 million, which is approximately $75.1 million. However, the settlement also requires the cessation of claims that arose before the mentioned deed, in addition to the postponement of claims before its entry into force.
Commenting on the settlement deed, Robbie Cooke, CEO of The Star, pointed out according to Asia Gaming Brief: “The resolution of this long-running dispute between Multiplex and Destination Brisbane Consortium is a significant and positive step. It removes considerable uncertainty and distraction and enables the project team to now focus solely on the delivery of a transformational precinct that will showcase Brisbane to locals, interstate and international visitors.”
Constant postponement of the project:
The said Queen’s Wharf project, which will include The Star’s latest casino, 1,100 hotel rooms and 2,000 apartments as well as the Skydeck platform for the observation which will include 50 restaurants, cafes and bars, was initially projected to officially open at the end of 2022.
However, the opening date was initially pushed back to Christmas 2023, leading to the firm announcing earlier this year that further delays would push the opening to April next year, which has occurred, meaning the opening date is now April 2024. Although the delays are constant, the aforementioned firm has gained access to several finished floors within the project.
Relatedly, in June, Robbie Cook added: “The revised opening date followed careful consideration of current progress by our builder. Queen’s Wharf has not been immune from the types of pressures that other major infrastructure projects across Australia have encountered.”