Foundation Theatres Invests in New Theatres For Sydney

Foundation Theatres has executed an exclusivity agreement and binding term sheet setting out key terms for The Star Sydney to divest The Star Sydney Event Centre and other additional spaces within The Star Sydney complex to Foundation Theatres. The Event Centre and additional spaces will be converted into new venues to host theatre, live entertainment and contemporary music in Sydney.

Foundation Theatres has been granted planning approval for the conversion of the Event Centre at The Star Sydney into a 1550 seat Broadway style theatre.  The detailed planning for the development and funding of the new theatre has commenced.  Before construction commences, the Event Centre will continue to be operated for a variety of shows and events.

Foundation Theatres has commenced planning for the development of the additional spaces for a contemporary music venue for up to 1000, and a flexible venue for theatre, cabaret, comedy and concerts for up to 550. These new venues will complement existing operations and are anticipated to be ready for operations in Q3 2025 and Q2 2026, respectively.

When the projects are completed, Foundation Theatres will operate five live performance venues within The Star Sydney complex adding to its existing Sydney Lyric and Foundry Theatre, further positioning The Star Sydney as a leading entertainment destination in Australia. Foundation Theatres also owns and operates the Capitol Theatre in Sydney.

Graeme Kearns, CEO of Foundation Theatres commented that:

“Our plans to build a much needed Broadway style theatre in Sydney have cleared a major hurdle with our transaction for the Event Centre. The conversion of the Event Centre represents the most commercially viable option for a new theatre in Sydney. The additional venues that we are planning will be a great addition to the live performance ecosystem of Sydney as the industry continues to grow and thrive.”

“In 2024, the Sydney Lyric welcomed more than half a million theatre-goers to our fantastic shows.  With the addition of our new venues, more than one million people a year will see shows at The Star Sydney. We have some exciting new content planned for the venues.”

ABOUT THE TRANSACTION

Foundation Theatres has executed an exclusivity arrangement and binding term sheet setting out key terms for The Star Entertainment Sydney Properties Pty Ltd (a wholly owned subsidiary of The Star Entertainment Group Limited) to divest The Star Sydney Event Centre and other additional spaces within The Star Sydney complex (Event Centre Assets) to Foundation Theatres. The transaction is subject to finalisation of long-form transaction documents, a number of customary conditions, including relevant government and regulatory consents.

Upon completion of the transaction, the consideration amount will be held in the disposal proceeds account established under the terms of The Star's debt facility and will constitute restricted cash.