Other spaces are included in the deal which was announced this morning and has a targeted competition of the end of next month.
Foundation Theatres already owns and operates the Lyric Theatre at The Star Sydney and the Capitol Theatre in the Sydney CBD.
Foundation Theatres has announced an intention to turn the 1,077m2 flat floor Event Centre at The Star into a 1,550-seat Broadway style theatre and a second more flexible space suited to theatre, cabaret and concerts for up to 550 attendees.
There are plans to transform a third space into a music venue for 1,000.
micenet understands from Foundation Theatres that the main theatre space could become a fixed seating venue, which would effectively withdraw it as a gala event space, but a final decision has yet to be made, and there is a desire for the space to be as flexible as possible.
Foundation Theatres CEO, Graeme Kearns, told micenet major changes to the space are still two to three years away and it will continue to operate as it has been in the meantime.
The Star is in need of cash, having announced to the stock market earlier this month that it had $79 million of available cash at the end of December 2024, a reduction of $107 million compared to the end of the previous quarter, despite having drawn down a $100 million loan.
On January 20, the company said that there was “material uncertainty as to the Group’s ability to continue as a going concern” if it did not succeed in boosting its cash.
The Star cites a number of factors contributing to its current position, including a “challenging consumer environment”, changes to casino regulation in NSW and its ongoing remediation efforts after being found unsuitable to hold a casino licence in both NSW and Queensland.
It is also paying off a $15 million fine from the NSW regulator after a second inquiry in 2024 in addition to meeting ongoing costs for the completion of Queen’s Wharf in Brisbane, in which it has a 50 per cent stake.
As part of the announcement to sell of The Star Sydney’s event assets this morning, The Star’s CEO, Steve McCann, said the company continues “to work on a number of other potential non-core asset transactions”.
However, Foundations Theatres’ acquisition of the Sydney Event Centre has been in the making since 2021, with plans submitted to transform the space in 2022.
