June 30 (Reuters) - Australia's Star Entertainment

said it had received a notice from Hong Kong's Far East

Consortium International ( FRTCF ) and Chow Tai Fook Enterprises

to terminate the deal to sell its 50% stake in its Queen's Wharf

project in Brisbane.

The termination is set to take effect five business days

from June 30, unless withdrawn earlier.

The March 7 agreement outlined the casino operator's planned

exit from its equity interest in Destination Brisbane Consortium

(DBC), but the parties had not resolved outstanding key

commercial issues of the deal as of this morning, Star said in a

statement on Monday.

Shares of Star were, however, up 1.7% at A$0.147, as of 0104

GMT.

The casino and hotel complex was developed for A$3.6 billion

($2.35 billion), Star's website says.

For years, Star and Blackstone-owned larger rival

Crown Resorts have faced multiple inquiries into anti-money

laundering rule violations and subsequent legal actions.

Had the deal gone through, Far East Consortium ( FRTCF ) and Chow Tai

Fook Enterprises were set to become the sole owner of the

Brisbane venture, which has luxury hotels and restaurants and

other amenities.

Star was, in turn, set to take on the investors' 66.67%

stake in a Gold Coast project in Queensland.

In a separate statement, property developer Far East

Consortium ( FRTCF ) said that Star must repay A$10 million within 30 days

of termination, failing which it must transfer its 33.3% stake

in Tower 1 (Dorsett) to the Hong Kong parties.

"Despite the receipt of this notice, The Star remains

willing to continue negotiations with the Joint Venture Partners

to give effect to the DBC transaction," Star added.

Star Entertainment did not immediately respond to a Reuters

email seeking confirmation of the repayment details.

($1 = 1.5314 Australian dollars)