Star operator dishes on fate of $400m tower project
THE operator of The Star Gold Coast has revealed construction of the $400 million Dorsett Hotel tower remains within budget and on track to open in 2022 despite the group hurting from the COVID-19 shutdown.
Star Group yesterday said it was executing a $200 million debt funding facility as it seeks to strengthen the company's liquidity. Investors strongly approved, sending Star shares up 9.4 per cent to close at $2.56.
Star said it had cut $25 million in capital expenditure for this financial year, however that relates mostly to the Sydney Sovereign Resort and not the Dorsett project.
The Broadbeach Island construction project has 160 workers on site each day.
A Star spokesman said that is expected to build up to 250 as work starts on the main tower rising above the six-level podium.
Star has estimated its operating expenses during the shutdown at $10 million per month from April made up of payment to employees that have not been stood down (the casino's hotels are still operating) as well as security and other fixed costs. About 8500 of 9000 Star employees have been stood down.
Originally published as Star operator dishes on fate of $400m tower project