Star Entertainment Group (ASX:SGR) is considering turning its Sydney hotel and casino assets into apartments as the struggling company searches for a lifeline to prevent a voluntary administration this week, The Australian reported on Feb. 28, without disclosing sources.
"Various groups" that include a joint venture between Lendlease and Mitsubishi have reportedly been assessing the prospects of turning the Pyrmont casino property into inner-city apartments, per the report. The joint venture owns the Circular Quay luxury residential property project.
While Blackstone is not interested in buying the Pyrmont property, the private equity giant "may be keen" to take control of Star Sydney's casino license, The Australian said.
Star is on the brink of going under voluntary administration on Wednesday. The embattled company, which is using safe harbor provisions, failed to release its half-year earnings report last Friday as it scrambled to make a last-ditch effort to keep itself afloat.
Star did not immediately respond to a request for comment by MT Newswires.
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