The $280 million deal announced in 2021 was part of Star’s transition to the $3 billion Queen’s Wharf casino development.

Star said it had been advised that Charter Hall no longer intended to proceed with the transaction.

“The basis for this is that the conditions have not been satisfied by the relevant date under the terms of the contracts,” Star revealed.

“Charter Hall declined to extend dates for satisfaction of the conditions.”

Charter Hall would not comment on the reasons for its decision. It also owns Reddacliffe Place, which is in front of the Treasury building and is a site the Brisbane City Council wants to acquire for its transformation of the Queen Steet Mall.

“Star is considering its options in relation to this matter generally,” the company said.

The site was intended to become a high-end hotel.

The collapse of the deal follows a turbulent period for the company which was caught up in a money laundering compliance scandal and two formal hearings in NSW and Queensland. It was also fined $100 million by each state and was now facing increased taxes in NSW.

Star was also facing increased duties in NSW, which managing director Robbie Cooke said was not sustainable.

The increased duties were announced by the previous Perottet Government. The changes were not legislated, but were included in that Government’s last Budget.

The recently elected Labor Government has been discussing the tax arrangements with casinos.

“To permit these conversations to continue, the Government plans to pursue the legislation following the forthcoming parliamentary winter recess,” the NSW Government said.

Cooke said if the duty was increased as proposed it would significantly challenge the economic viability of the Sydney business and put the jobs of 4000 hard-working Sydney employees in jeopardy.

Star’s shares slumped again today, falling 5 per cent at lunch time. Its shares had fallen 37 per cent this year.