Aug 19 (Reuters) - Australian casino operator Star Entertainment Group (SGR) reported on Thursday a return to full-year profit while saying it has started the process to sell its Sydney property — its biggest — and get it back on lease.
The company, which pulled a A$9 billion buyout bid for larger rival Crown Resorts (CWN) last month, has been selling non-core assets to withstand COVID-19-led lockdowns that have hit operations across its properties over the last year.
The prolonged Sydney lockdown this winter has shuttered its property since June 25 and clouded recovery prospects. It earns about half of its total revenue from this property.
Star, whose shares rose as much as 8% after the results announcement, plans to retain around 50% ownership in the Sydney property following its sale and leaseback and has said properties on the Gold Coast and in Queensland could also follow suit later.
Other assets being hived off by the company include car parks, a private jet, and the Treasury Brisbane property that it hopes to rake in around A$250 million ($179.80 million) from in fiscal 2022.
The company also said it was still interested in exploring "opportunities" with embattled larger rival Crown following its bid withdrawal over regulatory concerns.
Star's statutory profit for the year ended June was A$57.9 million, compared with a loss of A$94.8 million last year.
Its shares were last trading 6.5% higher at A$3.61. ($1 = 1.3904 Australian dollars)
