Star Entertainment Group (ASX:SGR) agreed to dispose of its 50% stake in the Destination Brisbane Consortium (DBC) and terminate its casino management agreement, pending regulatory approval, according to a March 7 filing with the Australian bourse.

The move follows a binding heads of agreement with joint venture partners Chow Tai Fook Enterprises and Far East Consortium.

Star will receive an upfront cash payment of AU$53 million and will be released from the parent company guarantee related to its share of DBC's debt facility, the company said.

As part of the deal, Star will fully acquire the Dorsett and Andaz hotels at the Star Gold Coast, increasing its ownership from 33.3% to 100%, the filing said. In the event Star terminates the heads of agreement, it may be required to sell its 33.3% interest in the Dorsett Hotel to the JV partners for a consideration of between AU$15 million and AU$18 million.

Following completion, Star will exit Brisbane and transfer assets, including the Treasury Hotel and Car Park, to the joint venture partners.

The transaction is expected to close by the end of April, subject to the signing of long-form documentation and the satisfaction of regulatory and other conditions.