Griffith Scoops Up Brisbane’s Treasury Building from Struggling Star

Education I Clare Burnett I 09 Sep 24 I The Urban Developer

Griffith University has acquired Brisbane’s historic Treasury Building in a deal for a new ‘flagship’ CBD campus.?

The university bought the site from embattled The Star Entertainment Group, which has just launched its $3.6-billion Queen’s Wharf development in the River City, but has struggled with the costs of such a hefty endeavour amid allegations, fines and concerns over its casino licence in NSW.?

The gambling group and casino developer subsidiary The Star Entertainment QLD Ltd sold the building for $67.5 million plus GST, it announced to the ASX, in what some have dubbed a “scramble for cash”.?

An independent inquiry into The Star released at the end of August declared it was unsuitable to regain control of its Sydney casino.?

The group said it was “currently reviewing its financial and liquidity position”.

The Star announced that its Treasury asset was for sale at the end of last year after a $248-million deal with Charter Hall for a complex including the Treasury fell through.

Net proceeds from the sale of the leasehold interest to Griffith are expected to be $60 million plus GST.?

The new lease and settlement are expected on September 27, bringing the curtain down on 30 years of Star ownership of the building.

According to a statement by Griffith University, the campus will be open by 2027 and by 2035 is expected to be home to about 7000 students and 200 staff.

It will house the university’s business, information technology and law disciplines, as well as a centre for postgraduate and executive education, adding to its existing Gold Coast, Nathan, Mt Gravatt and South Banks campuses.

Competing with the likes of the University of Queensland and Queensland University of Technology in central Brisbane, while Griffith already has a Brisbane centre presence thanks to its South Bank campus, the new building will offer a “flagship location…[to] enhance Griffith’s profile both locally and globally, making it an iconic hub of learning and engagement,” according to Griffith.

The university had previously been linked to other major CBD sites including the Myer Centre after the departure of the eponymous department store last year.

“International students will also benefit from the prime location providing them with the opportunity to live, work, and study in the heart of the city,” a statement from Griffth said.?

The move comes at an interesting time for the university sector.?

The Australian government late last month announced new caps on international student numbers.

Pending the passing of legislation, it will set a National Planning Level for new international student commencements of 270,000 for calendar year 2025.

Its aim is to “support universities who have been disproportionately affected by the pandemic and uneven patterns of student returns”.

International education was worth $36.4 billion to the Australian economy in the 2023 financial year, with $14.6 billion paid as tuition fees.

AUTHOR Clare Burnett