(Reuters) - Australia's Star Entertainment said on Wednesday it would divest its Star Sydney Event Centre assets to theatre owner and operator Foundation Theatres for A$60 million ($37.51 million).

Star's unit, The Star Entertainment Sydney Properties, has entered an exclusivity arrangement and binding term sheet for the divestiture, the company said in a statement.

The move comes as the embattled casino operator raised concerns about liquidity and cash earlier this month. At the end of the December quarter, Star had only A$79 million in available cash.

The company is also undergoing multiple regulatory inquiries and long closures of casinos.

It posted a smaller second-quarter loss earlier this month.

($1 = 1.5995 Australian dollars)