Star Entertainment Group has sold Charter Hall the Treasury Casino and a neighbouring hotel and car park for $248 million.
As part of the agreement, the operator will lease back the guesthouse and garage for an initial 30 years with two 15 year options.
The agreed rental – with fixed annual increases – means the sale is being struck at initial capitalisation rate of four per cent.
Charter Hall will attain vacant possession of the casino in 2023, when Star relocates to a nearby Queens Wharf venue, which is under construction.
That component of the investment will also be settled then.
“Under the arrangements The Star retains its existing interest in the former State Library building, which is not part of the transaction,” a seller statement said (story continues below).
“The Star will explore future uses and ownership models for this site, which is the smallest of the four Treasury assets,” it added.
The transaction remains subject to state government approval.
Charter Hall will hold the assets in its Prime Office Fund.
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