Star City - Leasehold not Freehold

For all those looking at or buying this as a discounted asset play, you should be aware that the large Star City site in Pyrmont is leasehold.

Terminating Date of lease: 2093
Rent: $250k per year

Essentially, Star control the land and can do what they wish with it till 2093, however it now makes sense why they could not sell the land/property.....because they were really selling a lease.

They will never be able to sell this lease to for a large amount especially now that the casino operation is marginal. The value of this lease is now tied solely to the profitability of the casino operation because the site cannot be redeveloped (into apartments) with only 70yrs remaining on the lease.

I only realised this today after digging around because it was getting closer to my buy price. However SGR is worth much much less than I thought and one of what I believed to be the more likely exits to return capital to shareholders is not there.