Star Entertainment Group has announced plans to build a second tower at its Gold Coast Jupiters Casino site, according to local media.
The group has revealed it has begun the planning process for its new 200-meter hotel tower, which will be in addition to an AU$345 million (US$245 million) refurbishment of the existing hotel as well as the 17-story luxury tower currently under construction.
The new tower is will include 700 hotel rooms and apartments, bringing up the casino and resort’s room numbers to almost 1400.
A live sports theatre is also planned to be a part of the transformation.
The total investment under consideration has the potential to reach $850 million.
“Our commitment to the Gold Coast is unambiguous. We are already well advanced on transforming the property through the hotel refurbishment and new restaurants, and later this year when we rebrand to The Star Gold Coast, the new six-star all-suite tower will be rising out of the ground,” said The Star Entertainment Group CEO Matt Bekier.
Beckier says the new tower will not affect the balance sheet. Star Entertainment Group and Hong Kong investors Chow Tai Fook and Far East Consortium have plans to each hold a 33 percent share in the development. Bekier says the group expects to sell down its share of the apartment complex within the tower once it has been built, so that the hotel will be funded with no capital outlay from the group.
“The only injection we will put onto that part of the development is the land,” said Bekier. “This extra investment doesn’t put any stress on the balance sheet. If we had to put another $500 million into the Gold Coast, I don’t think that would have flown and I don’t think we could have justified the returns.”