Shares in Sino-Australian investment firm ASF Group have jumped 15% after the Queensland government announced a new site for an integrated resort and casino on the Gold Coast.
ASF’s proposal to develop a casino resort and cruise ship terminal on Wavebreak Island was rejected by the Queensland government earlier this year, but the two parties have now agreed to a new site at Main Beach.
It sits on a five hectare block between Sea World and the Gold Coast Fisherman’s Co-operative.
The Queensland government will now request a detailed development proposal, which ASF expects to finalise in the first quarter of 2016.
ASF Group chairman Min Yang said the ASF Consortium, a wholly-owned subsidiary of ASF Group, would work closely with the Queensland government to deliver an internationally recognised tourism destination that creates thousands of jobs.
The Gold Coast already has a casino, Jupiters, which is operated by Echo Entertainment Group.
Echo is spending $345 million to expand and refurbish Jupiters Gold Coast, and Morningstar gaming analyst Brian Han said the presence of another casino on the Gold Coast would be negative for Echo.
However it is still too early in the process to determine what the impact might be, he said.
ASF shares gained 4.5 cents, or 15%, to 34.5 cents and shares in Echo dropped two cents to $5.10.